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Financial Technology in Indonesia: A Fragmented Instrument for Financial Inclusion?

Author

Listed:
  • Chaikal Nuryakin

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia)

  • Lovina Aisha
  • Natanael Waraney Gerald Massie

Abstract

This study aims to delve deeper into the discussion on how the ?nancial inclusion progress in Indonesia could be affected by the growing ?ntech industry. We shall comprehensively discuss the current state of the platforms in the country, including the potential bene?ts and challenges. Such af?ictions include the hugely-concentrated deposit market, to begin with and the discrepancies between regulators and the technological changes, while the high internet and mobile phone penetration are only one of the many advantages the country are endowed with. The study aims to highlight the challenges faced in increasing ?nancial inclusion before the ?ntech platforms begin to ?ourish and how they differ to the current condition. Novel and relevant policy recommendations are also provided in the latter parts of the discussion.

Suggested Citation

  • Chaikal Nuryakin & Lovina Aisha & Natanael Waraney Gerald Massie, 2019. "Financial Technology in Indonesia: A Fragmented Instrument for Financial Inclusion?," LPEM FEBUI Working Papers 201936, LPEM, Faculty of Economics and Business, University of Indonesia.
    • Handle: RePEc:lpe:wpaper:201936
    as

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    File URL: https://lpem.org/repec/lpe/papers/WP201936.pdf
    File Function: First version, 2019
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    References listed on IDEAS

    as
    1. Pierre-Olivier Gourinchas & Jonathan A. Parker, 2001. "The Empirical Importance of Precautionary Saving," American Economic Review, American Economic Association, vol. 91(2), pages 406-412, May.
    2. Finke, Michael S. & Huston, Sandra J., 2013. "Time preference and the importance of saving for retirement," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 23-34.
    3. Chaikal Nuryakin & Prani Sastiono & Faradina Alifia Maizar & Pyan Amin & Nanda Puspita & Wahyu Pramono & Christine Tjen, 2018. "Toward Higher Financial Inclusion Rate: Service Quality, Costs Of Access, And Awareness," LPEM FEBUI Working Papers 201821, LPEM, Faculty of Economics and Business, University of Indonesia, revised Jul 2018.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Sugandi, Eric Alexander, 2021. "The COVID-19 Pandemic and Indonesia’s Fintech Markets," ADBI Working Papers 1281, Asian Development Bank Institute.

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    More about this item

    Keywords

    ?nancial inclusion — ?nancial technology — Indonesia — digital divide;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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