Kadin insists Indonesian govt to initiate fintech services

The Indonesian Chamber of Commerce and Industry (Kadin) has urged the government to facilitate fintech services by giving fiscal incentives and regulations in a move to enhance financial efficiency.

According to The Jakarta Post, chairman of Kadin Rosan P. Roeslani spoke at the 2016 Fintech Festival and Conference in Jakarta on Monday stating that in the aftermath of the global economic crisis, new financial services has emerged with the creation of alternative models of financing apart from conventional bank loans.

“To speed up the development of fintech, we expect fiscal incentives to attract investors to support their development and alleviate the burdening taxes that [fintech] startup companies face," he stated as reported by Jakartapost.

He also mentioned that especially for small and medium enterprises (SME’s) including creative industry startups, fintech’s role in global financial industries is instrumental in growing financial inclusion. He also stated that Indonesian Chamber of Commerce and Industry saw the necessity of specific regulation to further govern fintech’s various aspects and also the licensing mechanism in order to strengthen the operational base of fintech businesses.

There have been various services offered by fintech startups to provide a wide range of financial products to the community. Rosan concluded that there is still ample room for innovations to further improve fintech services.