A major upside and positive characteristic of Fintech is it’s ability to create degrees of financial inclusion in countries and regions where financial infrastructure is a major weakness. Like other countries, Indonesia recognizes the value of the Fintech industry and has seen a 78% increase in the number of financial technology companies it hosts. However, the hope of financial inclusion is being hindered by factors of financial fragmentation. A combination of too many new consumer Fintech products and poor rhetorical standings between regulatory bodies has caused issues for the country’s government. In Indonesia, cooperation between the Financial Services Association and the Communications and Information Ministry has been troublesome. Indonesia’s lack of ability to set forth effective regulation for the Fintech industry sprouts from the lack synergy between the regulators. The Financial Information Service System is in development and hopes to solve some of these issues. The regulatory settings need to promote inclusion for non-bank Fintechs which will allow for further financial consumer inclusion across the country as well.
http://www.thejakartapost.com/news/2017/02/07/fintech-talk-fintech-in-indonesia-between-fragmentation-and-financial-inclusion.html