FINTECH IN INDONESIA: DILEMMA OR CONFLICT OF INTEREST

Fintech’s business in Indonesia is growing rapidly nowadays, proven by the existence of many Fintech-based startup companies in the last few years. Fintech startup itself is starting to occupy a large part of the Indonesian startup industries. Fintech helps people to access financial products, facilitate transactions and improve their financial literacy easier. Fintech became highlight in September 2015 when Indonesia’s Fintech Association established. The goal is to set a trusted and reliable partner to build up Indonesia’s Fintech ecosystem. It come up from Indonesia enterprises and for Indonesians. Up to now, there are at least 140 Fintech players in Indonesia, with 55 of them joining the organization as full members.

In 2016, the Indonesia Financial Service Institution (POJK) issued new regulations and policies about fintech on off balance sheet (marketplace) lending and by Central Bank (BI) on Payment Transaction Processing. The growth of Fintech players has been skyrocketing, from only 7% in 2006/2007 to 78% a decade later. The number of the players are recorded around 135-140 companies. 43% of them play in the payment sector, such as mobile payment as well as payment gateway startups from various sectors, ranging from payment startups, lending, financial planning (personal finance), retail investment, crowdfunding, remittances, financial research, and others. Fintech reaches the younger generation who are more familiar with the internet and make use of the internet for all their needs. Fintech can also make things simpler and more efficient. Fintech uses technology, software and big data, it also uses social media data from its users that Fintech uses in conducting risk analysis.