FEBRUARY 20268 Microfinance has become a significant driver of economic development in Indonesia, where it plays a vital role in serving the unbanked and underbanked segments of the population. The Indonesian microfinance industry is made up of several players, ranging from traditional financial institutions to fintech companies offering innovative solutions to borrowers and investors.The microfinance industry in Indonesia is highly regulated, with the Financial Services Authority (OJK) responsible for overseeing the industry and ensuring compliance with regulations. While traditional microfinance institutions still dominate the market, fintech companies are gradually gaining ground and revolutionizing the industry with their innovative solutions.In 2023 the government of Republic of Indonesia has set a target for financing distribution to ultra micro entrepreneurs of IDR 470 trillion (around $30 billion) and is targeted to increase again to IDR 585 trillion in 2024. MSMEs continue to contribute to the gross domestic product (GDP) from year to year. Of course, the growth that is expected requires intervention from technology. Traditional microfinance requires new technologies that enable more people to participate in financial services, even if they don't have access to the bank accounts. It helps demystify the process HOW INCLUSIVE TECHNOLOGY MODERNIZING MICROFINANCE IN INDONESIABY WILLIAM NOTOWIDAGDO, SENIOR VICE PRESIDENT OF ENGINEERING, AMARTHAWilliam NotowidagdoIN MYV EW
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