The Fintech Industry contributed Rp. 25.97 trillion to the national economy

INDUSTRY.co.id - Jakarta - The study of the Institute for Development of Economics and Finance (Indef) together with the Indonesian Fintech Association (Aftech) shows that financial technology companies (Fintech) contribute Rp. 25.97 trillion to the Indonesian economy.

"The development of fintech in Indonesia is able to increase Gross Domestic Product or GDP by IDR 25.97 trillion both directly and indirectly. In addition, household consumption is able to increase to IDR 8.94 trillion. Both of these indicate the existence of Fintech has been able to improve the Indonesian economy macro, "Bhima said in an official statement received in Jakarta on Tuesday (08/28/2018)

Meanwhile, other Indef economists, Nailul Huda said that on the business side, labor compensation in the form of salaries and wages could increase by Rp4.56 trillion with the sectors that experienced an increase were the trade, finance and insurance sectors.

"These three sectors have a direct role in the development of fintech. In addition, the presence of Fintech is also able to contribute to employment of 215,433 people not only from tertiary sectors but the primary sector, namely agriculture, also experienced a large employment absorption, namely 9,000 people, "said Huda.

The study conducted by Indef and Aftech was motivated by the low penetration of financial services in Indonesia, especially in the field of credit or financing. This is indicated by the ratio of lending to GDP which is still at 39.1 percent (World Bank, 2015).

More deeply, credit services for MSMEs are still very low.

Bhima said that the portion of MSME credit to total credit in the range of 20-22 percent.

"On the other hand, there are only half the adult population who have accounts at the Bank. These figures show that banking services, especially in the credit service segment, are still very low in penetration," Bhima said.