Indonesia’s Finance Minister, Sri Mulyani, said that financial technology companies, most often established by young people, are the solution to bridging the economic gap among the unbanked, micro and small enterprises in rural area.
“Financial technology allows us to be far more cost-efficient, ” she said during the Indonesia Financial Technology Conference 2016 in ICE, BSD, Tangerang.
Sri Mulyani also hopes opponents to Fintech, typically the banking sector, do not create negative stigma against the new industry.
“I hope they don’t consider this (FinTech) as a threat, but rather an opportunity to make their (banks) business models more efficient so they can reach more communities,” she said.
“The President is committed to existing Fintech companies in Indonesia. Our government will create an appropriate regulatory framework to ensure this technology will strengthen Indonesia’s economy. In the end, it will increase the welfare of our communities,” stated the former Director of the World Bank.
The large number of participants that attended the Fintech Indonesia Financial Technology Conference in 2016 demonstrates the positive attention MSMEs are receiving with one potential benefit being reduced transaction costs.
“This will encourage MSMEs to join the formal sector and begin paying taxes,“ she said as the conference.
In addition, the growing number of startups in the Fintech sector that provide financial services to geographically-remote villagers will be able to create new jobs easily.
“Those who work in the informal sectors will benefit,” she said.
Amartha, a microlending technology company that has disbursed funds more than 180 billion rupiah to over 60 thousand borrower all. Since inception as a microfinance institution in 2010, Amartha has a commitment to empower those in the informal sectors and increase financial inclusion. Amartha believe that all people have equal access to finance, including unbanked communities. Therefore Amartha transformed as P2P Lending in 2016 to invite more people into the movement.
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