JAKARTA – In the national financial inclusion strategy which was passed by President Indonesia Joko Widodo on 7 December. Targeting Indonesia’s inclusion index to increase by 90 percent by 2024. In realizing this, financial technology peer to peer lending or Fintech funding has a role as the main driver to accelerate the transformation of the digital economy, especially the MSME sector.
Deputy for the Coordination of Macroeconomics and Finance, Coordinating Ministry for Economic Affairs, Iskandar Simorangkir. Said Indonesia needed digital economic transformation through fintech to restore the national economy.
“The focus of financial inclusion is not on the saving movement. But on providing capital to the informal MSEs sector and the fastest way by digitizing them. With digital transformation, Indonesia’s digital potential in 2025 could reach 133 billion US dollars, ”he said in an official statement, Tuesday (15/12).
Of the 64.19 million MSEs, 64.13 million are MSEs, most of which are in the informal sector. One of the main motors for accelerating digital transformation through support from fintech funding. Which has advantages in innovation and speed in reaching informal MSEs. Meanwhile, fintech funding is a strategy to expand and accelerate financial inclusion and digitization.
Meanwhile, Senior Economist at INDEF, Aviliani, added that currently, fintech is meaningful to the Indonesian economy because financial inclusion without fintech would not be possible, precisely with the existence of fintech, it was the first time that many UMKM were touched in a single loan, especially fintech funding.
Fintech Funding Indonesia
“Now, there are many formal and informal UMKM that get loans from fintech funding,” he said.
In its development, fintech funding has distributed Rp. 137.66 trillion to the public and already has 40 million users throughout Indonesia, most of whom are MSME players.
Deputy Director of Fintech Regulation, Research and Development of the OJK, Munawar Kasan, stated that in 2021. The challenge for the industry of fintech funding regarding the development of market share in the ecosystem is very large. And is the key to business success and sustainability.
“In addition, they also expect the platform to provide added value by not only providing loans. But also overcoming borrower problems and developing borrower businesses,” he said.
Amartha as a pioneer fintech funding that focuses on empowering women in villages, seeks to increase digital financial inclusion through the creation of products that suit the needs of the informal MSME sector by implementing framework a financial inclusion strategy which consists of three pillars, including first creating financial products that are simple and easy to understand for them.
Second, reducing transaction costs by presenting digital financial services in the user’s residence.
“In addition, they also expect the platform to provide added value by not only providing loans but also overcoming borrower problems and developing borrower businesses,” he said.
Amartha’s Chief Risk and Sustainability Officer, Aria Widyanto, added financial literacy and digital literacy must go hand in hand. It cannot be separated from the other because it is an opportunity to modernize UMKM so that they can be more competitive, efficient, and also have a greater capacity to be able to advance in class.
“Currently Amartha is preparing investment and insurance financial products and so on for UMKM,” he said.
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