Fiscal-Incentives-for-Fintech-Industry

Fiscal Incentives for Fintech Industry

The chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Rosan P. Roeslani stated that the digital economy is currently growing very rapidly, among in the global, regional, and national levels.

It will be real about the potential of Indonesia as the largest digital economic power in 2020. According to Rosan, it is reflected in the activities of the number and penetration of digital economic applications that are significant in national economic.

Except of that, the number of internet users, social media and mobile phones in Indonesia have supported the continuous of he digital-based market. "The evolution of financial services began to change by creating the alternative models in addition to conventional services by banks after the global financial crisis," Rosan said.

The Presence of technology-based financial services or financial technology (fintech) has introduced an alternative way in providing financial access for the community, especially those who live in remote areas and can get the banking services. The role of fintech in the global financial services industry is quite important in creating the growth momentum of financial inclusion.

This rule is particularly applied in the SME sector, including startups in the financial industry that using information technology in the financial services industry. Rosan said Kadin believes there is still room for innovation to improve service. He said that the development startup fintech as payment gateway products is still in the early stages in Indonesia.

Therefore, Kadin encourages the government to support the fintech indusry. "Kadin expects the fiscal incentives to attract investors to support its development, and to reduce the startup’s burden in paying taxes," Rosan said.

In addition, Rosan said that Kadin thinks it is needed the regulations to various aspects of fintech. Furthemore, a licensing mechanism for fintech is required to strengthen its business operations base and ensure the consumer protection in Indonesia.

Source: Antara

Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.

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