Jakarta (ANTARA) – Indonesia’s digital economy is the largest in value in Southeast Asia with the total gross merchandise value (GMV) reaching US$70 billion, Finance Minister Sri Mulyani Indrawati has said.
“We all understand that we have tremendous potential,” the minister said at the 3rd Indonesia Fintech Summit 2021 here on Saturday.
According to research by Google, Temasek, and Bain & Company, digital payments will continue to grow strongly in Indonesia, with gross transaction value expected to reach US$1.2 trillion in 2025, she noted.
Digital payments dominate the financial technology (fintech) industry in Indonesia, in addition to peer-to-peer (P2P) lending, which, in recent years, has continued to increase, both in terms of the number of borrower accounts, lenders, and the total loan nominal, she added.
According to the Finance Minister, electronic money transactions in Indonesia have continued to increase, rising over 100 times from just Rp2 trillion (US$139 million) in 2012 to Rp205 trillion (US$14.26 billion) in 2020.
“This illustrates that, in less than a decade, there has been an increase of 100 times. So, we are not talking about single-digit linear growth, this is exponential,” she remarked.
Indrawati said there has been continued adoption of digital financial services accompanied by a shift in the people’s behavior towards the digital economy, accelerated by the pandemic.
Hence, the digital financial sector, including fintech, is in a strong position to play an increasingly important role, she added.
Therefore, the government and regulators must continue to create a good digital environment with proper regulations, to anticipate its negative impact, such as illegal online loans, Indrawati said.
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