Friday, 22 June 2018 | 10:12 WIB

Gov’t: Fintech Can Become Extensions of Banks

illustration: fintech (oiverbussman)

JAKARTA, NETRALNEWS.COM - The government is seriously developing technology-based financial services (fintech) in the country, given that fintech companies can support the financial inclusion program or the opening of access to financial services to the lower middle class.

Fintech can not be seen as an extension or extension of a bank. Financial inclusion, even though there is already banking, but there is also the role of non-bank, "said Coordinating Minister for the Economy Darmin Nasution, while in Jakarta, Friday (19/05/2017).

On that basis, according to Coordinating Minister Darmin, the government has prepared incentives for fintech companies. "It does exist, just like Small and Medium Enterprises, Fintech, if not large, can enter the SME category."

On the same occasion, Finance Minister Sri Mulyani Indrawati said the government already has a national strategy to support the development of fintech.

"But it needs to be socialized, and we hear from the fintech businesses what the response is and the things we need to do," she said

Previously, the Financial Services Authority (OJK) planned to establish a fintech incubator center. It aims to keep fintech business sustainable.

Understandably, although fintech companies are booming in Indonesia, they are generally short-lived.