Jokowi on Fintech Issue: Tight Regulation May Hinder Innovation

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  • Indonesian President Joko

    Indonesian President Joko "Jokowi" Widodo addresses participants during the opening session of the World Economic Forum on ASEAN Wednesday, Sept. 12, 2018 in Hanoi, Vietnam. "But rest assured, myself and my fellow Avengers stand ready to prevent Thanos from wiping out half the world's population," he added, to laughter and applause from the audience. Thanos is the villain of the 2018 film "Avengers: Infinity War" who wiped out half of all life in a fictitious universe to solve the problem of limited resources for a growing population. AP Photo/Bullit Marquez

    TEMPO.CO, Nusa Dua - President Joko `Jokowi` Widodo talked about the rapid development of technology that creates new technology in economic affairs such as financial technology or fintech, at The Bali Fintech Agenda in Nusa Dua, Bali, today. 

    Jokowi said the recent development of fintech was akin to when the technology was first found and was developing in almost 25 years ago. The US government at that time, Jokowi deemed, had well performed by implementing favorable and accommodative policy.

    “That favorable and accommodative policy could prevent an early, excessive government intervention on giving innovators chances to create innovation without fear,” said Jokowi in his speech, Thursday, October 11.

    The Bali Fintech Agenda is one of the events initiated by the Indonesian government during the 2018 IMF-World Bank Meeting which discusses serious matters related to fintech development especially on the act of policymakers.

    Jokowi said the internet development in the United States was first popularized by Mosaic, a browser web that introduced World Wide Web and Internet from which many innovations such as AOL and Yahoo born.

    Learned from the success of internet innovation 25 years ago, Jokowi reminded the importance of regulation that could encourage innovation development. He noted rules on fintech should not be issued within a short time thus it would give a space or freedom for innovation to be made.

    “As in 25 years ago, we should not issue a regulation quickly, but we must first let it grow. So, we have to respond to the innovation wave with positive regulation and provide a safe space for public innovation,” the president remarked.

    Jokowi further explained the government had a strategic position as the legislator on fintech development as tight regulations would apart economic activities from the cyber world that developed through the fintech system.