7250003
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10.5281/zenodo.7250003
oai:zenodo.org:7250003
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user-eu
Can Digital Currencies End Financial Exclusion in Indonesia? Economic Realities and Policy Ambitions
Bilotta, Nicola
Istituto Affari Internazionali
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Creative Commons Attribution 4.0 International
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digitalisation
crypto
currency
Indonesia
inclusion
digital policy
financial services
<p>Digitalisation is driving Indonesia’s economic development. The empowerment<br>
of an efficient system of digital payments is a key underlying factor for the<br>
establishment of an inclusive and well-developed digital economy. As a first<br>
and fundamental step, the Bank of Indonesia launched the “National Cashless<br>
Movement” (GNNT) in 2014. This vision was further advanced with the “Indonesia<br>
Payment System Blueprint 2025” (IPS), which aimed at boosting digitalisation in<br>
the banking industry through open banking and technology developments. As a<br>
result, Indonesia’s digital economy and finance is recording remarkable upward<br>
trends – such as an increase of 36.9 per cent in e-commerce and 52.6 per cent in<br>
fintech lending transactions between 2020 and 2021. Similarly, cashless payments<br>
are experiencing a spectacular growth. The usage of the Quick Response Indonesia<br>
Standard (QRIS) system, which enhances cashless payment, has doubled. Credit<br>
card transactions and e-money usage increased by 20 per cent and 51.6 per cent,<br>
respectively, in the same two-year period.</p>
<p>In this context of vibrant, quick transformations, a diverse ecosystem – which<br>
comprises incumbent financial institutions, start-ups and technology companies<br>
– is trying to advance Indonesia’s digital payments while targeting the goal of<br>
financial inclusion. The rise of digital payment solutions indeed provides a unique<br>
window of opportunity to tackle the current 92 million unbanked Indonesians<br>
and 62 million small and medium-sized enterprises (SMEs) that are excluded from<br>
the formal economy in Indonesia.</p>
Horizon 2020 MSCA-RISE, Grant Agreement #873119
Zenodo
2022-08-26
info:eu-repo/semantics/other
7250002
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user-eu
award_title=Promoting Research on Digitalisation in Emerging Powers and Europe towards Sustainable Development; award_number=873119; award_identifiers_scheme=url; award_identifiers_identifier=https://cordis.europa.eu/projects/873119; funder_id=00k4n6c32; funder_name=European Commission;
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