President Joko “Jokowi” Widodo has known as on monetary expertise (fintech) firms to observe good governance and accountability to mitigate the dangers that include speedy technological developments within the monetary sector.
In his prerecorded remarks to open the Indonesia Fintech Summit 2020 on Wednesday, Jokowi mentioned that fintech companies suppliers ought to stay cautious of sure safety dangers akin to cybercrime, misinformation, transactional errors and knowledge misuse that would hurt the standard of their companies.
“Fintech players should implement good governance and accountability to mitigate those risks,” the President mentioned, notably because the nonbank sector was not regulated as strictly because the banking sector.
“This way, [fintechs] can provide secure services to customers and make great contributions to micro, small and medium enterprises [MSMEs] as well as the national economy,” he mentioned.
Based on an earlier report from the Nationwide Cyber and Encryption Company (BSSN), Indonesia noticed greater than 88 million cyberattacks throughout the first 4 months of the yr, with March recording the best each day common in cyberattacks.
A number of on-line marketplaces and fintech platforms skilled knowledge breaches this yr. Most just lately on Oct. 28, fintech aggregator Cermati.com was the sufferer of knowledge theft that obtained the information of virtually three million customers that had been bought on-line for US$2,200. The info theft got here to gentle on Nov. 1, in a tweet posted by cybersecurity researcher and marketing consultant Teguh Aprianto to his Twitter account, @secgron.
Cermati.com is the second fintech platform to expertise a knowledge breach this yr, after the information of round 890,000 Kreditplus customers was leaked in August.
The Monetary Providers Authority (OJK) was pushing the Home of Representatives to conclude its deliberation on the private knowledge and safety invoice for stopping and fixing such circumstances, chairman Wimboh Santoso mentioned on Wednesday on the summit.
Indonesia has no regulation in place that authorizes regulation enforcement to carry felony prices in opposition to perpetrators of knowledge breaches, theft or misuse. The 2008 Digital Transaction and Info Regulation solely permits cyberattack victims to file for compensation for breach of their private knowledge.
“The measure is not sufficient punishment, and we hope that the [data protection] bill can deter people from misusing customers’ personal data,” mentioned Wimboh.
The Indonesia Fintech Affiliation (Aftech) has lengthy been pushing for the invoice’s passage, with Aftech managing director Mercy Simorangkir saying final yr that the invoice was important for shifting the trade in a extra accountable path.
The federal government has pinned its hopes on fintech firms to assist increase monetary inclusion to its 2024 goal of 90 p.c. Indonesia’s monetary inclusion charge in 2019 was 76 p.c, decrease than the speed of different Southeast Asian international locations like Singapore (98 p.c), Malaysia (85 p.c) and Thailand (82 p.c).
OJK knowledge additionally confirmed that Indonesians nonetheless rated low in digital monetary literacy. Solely 35.5 p.c of the inhabitants demonstrating familiarity with digital monetary companies (DFS) final yr, whereas simply 31.26 p.c of Indonesians used DFS.
“I hope that fintech innovators will not merely become lenders and online payment service providers. They should also continue to develop themselves to provide other functions like aggregation, equity crowdfunding and project finance services,” the President mentioned.
Finance Minister Sri Mulyani Indrawati added throughout the opening ceremony that the federal government was dedicated to supporting such efforts by growing extra info and communication expertise (ICT) infrastructure to develop web entry nationwide.
Sri Mulyani mentioned the federal government had allotted Rp 413 trillion (US$29.17 billion) to construct ICT infrastructure for digital improvement and Rp 30 trillion to develop digital expertise. The ICT infrastructure allocation included constructing base transmission receivers in additional than 5,000 villages and 12,377 different places as but unconnected to web networks.
“The terms outermost, marginalized or left behind regions will be no more when it comes to internet connection,” she mentioned.
Bank Indonesia (BI) Governor Perry Warjiyo additionally expressed the central bank’s dedication to attaining the nation’s goal for monetary literacy and inclusion, whilst BI continued with its personal digital transformation.
The central bank had to date adopted a number of digital applied sciences as a part of its drive towards digital transformation, together with the QR Indonesia Customary (QRIS) for digital cost companies and an open banking software programming interface (API) to facilitate interconnectivity between banks and fintech.
“We are also continuing to promote digital banking, to develop the payments ecosystem for retail and to conduct our own regulatory reform to make agile policies that support the fintech industry,” mentioned Perry.