The Role of Fintech Encourages the Export of Small Medium Enterprises in Indonesia

  • Ragimun - Researcher at Fiscal Policy Agency, Ministry of Finance
  • Sri Yanthy Yosepha Lecturer at Economics Faculty of Dirgantara Suryadarma University in Jakarta
DOI: https://doi.org/10.22610/jsds.v9i3.2478
Keywords: Fintech, Export Increase, SME’s

Abstract

At present the development of financial technology (fintech) in Indonesia is very fast, many nonbank companies practice as fintech executors who channel loans to the public or Small Medium Enterprise (SMEs), this has the potential to lead to illegal banking practices (shadow banking). The next problem is how the government makes rules that can synergize fintech with the business world, banking, SMEs and others. In the future, it is expected that Fintech will play an active role in encouraging the export of the SME sector which is Indonesia's flagship sector. In this study a qualitative descriptive approach was used, which emphasized the discussion by examining the role of fintech to encourage the export of small and medium industries in Indonesia. Data sources that can be used are data from the Central Statistics Agency (BPS), the Financial Services Authority (OJK), Bank Indonesia and various relevant data sources. Fintech is currently very helpful in helping the financial literacy of the Indonesian people including SMEs as a mainstay of increasing exports in Indonesia. Several obstacles to the spread of the role of fintech continue to be overcome through various means including infrastructure improvements, socialization and financial literacy to the public and SMEs and fintech regulatory policies. The government needs to make harmonious rules to grow and to avoid risks in the financial services industry. This is crucial because the development of fintech in Indonesia is very fast. Licensing for the establishment of fintech companies from other countries must be monitored.

Downloads

Download data is not yet available.

References

Akbar, D. S. & Fadillah. (2016). Crowdfunding Concept for Infrastructure Funding in Indonesia. Ministry of Finance. Cash. (2018). OJK: Many Fintech from China operate without permission in Indonesia. Cash newspaper. Chrismastianto, A. W. & Immanuel. (1997). SWOT Analysis of Financial Technology Implementation on the Quality of Banking Services in Indonesia. Jurnal Bisnis Indonesia, 20, I. DBS Bank. (2016). Increasing Financial Inclusion through Banking Digitalization. Deloitte. (2015). Digital Financial Services in Indonesia. Desai, Falguni. (2015). The Evolution of Fintech. Effendi Ishak. (2005). Article: Role of Information for SME Progress. People's Sovereignty. Yogyakarta Fahlevi, I. & Simon. (2016). The Role of Financial Technology and its Regulations in Indonesia, Journal. Fitri Amalia. (2016). The Fintech Book: The Financial Technology Handbook for Investors, Entrepreneurs and Visionaries. Journal of Indonesian Economy and Business, 31, 3. Habibi, Y. (2016). Smart Practice Reflections. Republika. Hadad, D. & Muliaman. (2017). Financial Technology (Fintech) in Indonesia. Financial Fervices Authority. Lecture About Fintech-IBS, 2 June 2017. Irma. M., Inayah. A. R. & Bella, G. N. (2018). Masharif al-Syariah Journal: Journal of Economics and Sharia Banking, 3, 1.
IOSCO (2017). IOSCO Research Report on Financial Technologies (Fintech). Julianto, P. A. (2016). Fintech, the way in which banking meets the needs of customers. Compass. Luhur, Niki. (2017). Fintech and Its Existence: Swear or Collaborative. Indonesian Fintech Association. Sudaryanto Ragimun Wijayanti, R. (2013). The UMKM Empowerment Strategy Faces the ASEAN Free Market. Financial and Monetary Journal. Fiscal Policy Agency Kemenkeu, 16, 1. Warta Ekonomi. (2016). If Fintech is not set, it can create Shadow Banking. Wulan, V. & Rakhma. (2017). Financial Technology (Fintech) a New transaction in Future. Journal of Electrical Engineering and Computer Sciences, 2, 1.
Published
2018-10-19
How to Cite
-, R., & Yosepha, S. Y. (2018). The Role of Fintech Encourages the Export of Small Medium Enterprises in Indonesia. Journal of Social and Development Sciences, 9(3), 66-77. https://doi.org/10.22610/jsds.v9i3.2478
Issue
Vol 9 No 3 (2018)
Section
Research Paper

Copyright (c) 2018 Ragimun -, Sri Yanthy Yosepha

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of a revised paper, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.