No: 24/34/DKom
Digitalisation has created various new opportunities to increase financial inclusion among micro, small and medium enterprises (MSME). The accessibility of financial services to MSMEs is a critical factor of increasing MSME productivity and resilience to economic shocks. That was the key takeaway delivered by BI Deputy Governor, Doni P. Joewono, at the International Seminar on Digital Financial Inclusion, as a side event of the 1st G20 Global Partnership for Financial Inclusion (GPFI) seminar held today (02/02) virtually. Speakers from OJK, as regulator, and international organisations, including the World Bank and Better Than Cash Alliance (PTCA), attended the seminar along with industry players, namely GoTo from Indonesia and Avanti Finance from India. Fruitful discussions at the seminar brought together views from regulators and the industry on issues and constraints that have arisen in the context of accelerating digital financial inclusion towards greater economic inclusion.
Digital financial inclusion is a priority agenda of Indonesia's G20 Presidency in 2022. Through digitalisation, financial inclusion could increase economic productivity and inclusiveness sustainably, particularly among MSMEs, including women and youth.
BI Deputy Governor, Doni P. Joewono, took the opportunity to explain how technological advances, the digitalisation of financial products and services and online business activities can support MSMEs to maintain income and business continuity during the Covid-19 pandemic. MSMEs in Indonesia have adapted quickly and readily to digital-based business. A Bank Indonesia survey conducted in 2021 revealed that 20% of Indonesian MSMEs have effectively mitigated the pandemic impact through business digitalisation and utilising online marketing media. Supply-side data shows that the adoption of cashless transactions, including debit cards and electronic money, has experienced rapid growth, as reflected in the value of QRIS transactions in December 2021, growing 237% on the previous year to reach Rp27.7 trillion.
The seminar discussed the importance of maintaining a balance between nurturing innovation in digital financial services to increase financial inclusion and managing the risks that may arise. The balance between innovation and risk mitigation is consistent with two of the 10 principles outlined in the G20 High-Level Principles for Digital Financial Inclusion, launched in 2016.
In terms of financial inclusion, the agenda of Indonesia's G20 Presidency in 2022 will focus on Digital Financial Inclusion and SME Finance in accordance with the G20 Financial Inclusion Action Plan (FIAP) 2020 and underscoring the theme of Indonesia's G20 Presidency, namely Recover Together, Recover Stronger. The MSME development agenda is a priority issue, focusing on utilising digitalisation to increase economic productivity, stability and inclusiveness for MSMEs, particularly women and youth.
The international seminar was attended by international and domestic representatives of government ministries/agencies, regulators, academics, international organisations, associations and the public in general.
Jakarta, 2 February 2022
Head of Communication Department
Erwin Haryono
Executive Director
Informasi tentang Bank Indonesia
Tel.021-131, email : bicara@bi.go.id
