The Minister Of National Development Planning Stated That 'fintech' Integrates Production From Upstream To Downstream

The Minister of National Development Planning (PPN)/Head of the National Development Planning Agency (Bappenas), Rachmat Pambudy, stated that financial technology (fintech) has the capability to integrate production activities from upstream to downstream.

He explained that fintech can connect various supporting aspects within the production process, including human resources (HR), raw materials, and payment systems.

"In the initial production process, raw materials are required, which are then processed and produced, followed by the sales process; this is where information technology is essential to link the upstream side to the downstream side," he said in Jakarta on Friday.

Rachmat stated that the integration of production activities through fintech, particularly in the real sector, is expected to assist Indonesia in achieving an economic growth rate of 8 percent per year, as targeted by President Prabowo Subianto.

He also invited the Indonesian Fintech Association (Aftech) to optimize Indonesia's significant digital economic potential as a catalyst and engine for national economic growth.

"Digital transformation is one of the key strategies to drive 8 percent economic growth. Indonesia possesses substantial and continuously evolving digital economic potential," he remarked.

He stated that there is currently a transformation in the global economic conditions, which is no longer reliant on the extractive sectors, such as mining, but is beginning to shift its focus towards the creative and digital economy sectors, including film and animation.

"Animation is a part of digital technology that requires creativity, which will eventually create a new ecosystem, and this can be connected through this association (Aftech)," said Rachmat Pambudy.

The collaboration between Aftech and the Ministry of National Development Planning/Bappenas has been realized through the launch of the "Aftech Digital × Real Sector Launchpad," which aims to bridge the digital economy ecosystem with the needs of the real sector.

Aftech's Chairman, Pandu Sjahrir, stated that the program is founded on the principle of co-creation, involving stages of problem identification, solution design, testing, and data-driven evaluation.

He mentioned that one example of the implementation of the "Aftech Digital x Real Sector Launchpad" is the digitalization project for dairy cooperatives in Malang, East Java, which will subsequently involve fintech providers from alternative credit scoring business models, insurance, financing, and financial planning.

"Aftech promotes national economic growth through collaboration based on problem-solving. It is not merely rhetoric, but a tangible work program that addresses the challenges of the real sector, upholding responsible innovation, good governance, and ethical principles," said Pandu Sjahrir.

Tag: Bappenas PPN Rachmat Pambudy