The rapid growth of Indonesia’s digital economy has seen significant advancements in sectors like fintech, e-commerce, and the digital transformation of small businesses (UMKM). The Indonesian government has also been proactive, with policies and regulations that support the continued development of the digital economy. This has created vast opportunities for the fintech industry in Indonesia, especially with 221 million internet users and 233 million smartphone users in the country.

In addition, the population of Millennials and Generation Z now constitutes over 50% of Indonesia's total population, and they represent the largest group of fintech users, making up about 68.7% of fintech users according to the Indonesian Fintech Association (AFTECH) Annual Member Survey 2024. A report from Google, Temasek, and Bain also projects Indonesia's Gross Merchandise Value (GMV) to reach USD 82 billion. The Indonesian government targets USD 109 billion in digital economy value by 2025, and East Ventures predicts this could soar to USD 360 billion by 2030.

However, with the increasing pace of digital economic growth, there is a critical need for improved financial literacy and inclusion. The 2024 National Survey on Financial Literacy and Inclusion (SNLIK) released by the Financial Services Authority (OJK) reveals that Indonesia’s financial literacy index stands at 65.43%, while the financial inclusion index is higher at 75.02%. This disparity indicates that many consumers still lack adequate financial education, posing challenges for the industry, especially in terms of consumer protection. To address this, there needs to be greater collaboration between regulators, industry players, and educational initiatives to improve financial literacy and inclusion.

As part of these efforts, OJK, in collaboration with AFTECH, the Indonesian Sharia Fintech Association (AFSI), and the Indonesian Fintech Lending Association (AFPI), is organizing the 6th Indonesia Fintech Summit & Expo (IFSE) 2024. The event will take place on November 12-13, 2024, at The Kasablanka Hall in Jakarta under the theme “Technology Convergence: Shaping the Future of Finance and Beyond.” This summit aims to bring together regulators, industry leaders, and global fintech experts to discuss the latest developments and challenges in fintech and digital finance.

The IFSE 2024 is part of the larger Bulan Fintech Nasional (BFN) 2024, a month-long celebration running from November 11 to December 12, 2024, that will feature discussions on financial planning, digital security, and the future of fintech. The event is expected to gather 500 to 750 participants, including fintech industry professionals, government representatives, international organizations, think tanks, and academics.

At a media gathering held at OJK’s Menara Radius Prawiro building on November 4, Djoko Kurnijanto, Head of the Department for Financial Technology Innovation and Digital Assets at OJK, outlined four key challenges in developing Indonesia’s fintech sector. These include the need for more investment in fintech, the importance of adequate regulation, the scarcity of skilled resources, and the need for integration and collaboration across the ecosystem.

"IFSE and BFN 2024 aim to be platforms where innovation in both products and collaborations with other sectors can thrive, strengthening the digital finance ecosystem in Indonesia,” Djoko added.

Budi Gandasoebrata, Secretary-General of AFTECH, highlighted that the 6th IFSE and BFN provide an important venue for dialogue between regulators and industry players. The event also offers fintech companies an opportunity to showcase their innovations and gain insights into the latest regulatory updates.

Ronald Yusuf Wijaya, Chairman of AFSI, emphasized that the 6th IFSE and BFN 2024 would promote financial literacy and inclusion in the digital finance sector, particularly focusing on Sharia fintech. Indonesia, ranking third in the Global Islamic Fintech Report 2023/24, is well-positioned to lead the development of Sharia fintech and expand access to financial services.

AFPI’s Secretary-General, Tiar Karbala, expressed that the event’s focus on fintech lending would bring attention to how inclusive financial solutions can address the funding needs of small and medium-sized enterprises (SMEs) in Indonesia.

To support the growth of digital finance in Indonesia, the 6th IFSE and BFN 2024 also encourage the public to participate in the #GueAFIN and #SiPalingFintech digital campaigns, aimed at raising awareness about fintech services and promoting digital literacy.