OJK Prepares Pentahelix Financial Innovation Center

Thursday, 21 Nov 2024

By putri@insightinnews.com The Financial Services Authority (OJK) is in the process of establishing an Innovation Center based on a pentahelix concept within the financial sector. This concept aims to serve as a collaborative hub among the government, industry players, the community, academia, and the media, with the objective of fostering the growth of innovative companies in the financial sector. Hasan Fawzi, the Executive Head of Financial Technology Innovation Supervision, Digital Financial Assets, and Crypto Assets at OJK, stated that OJK is steering the entire digital financial ecosystem in Indonesia not only towards rapid growth but also in a direction that yields benefits. "These benefits extend beyond just the business actors and their industry activities; they also positively impact the enhancement and advantages within the financial system, thereby supporting national economic growth," Hasan remarked in a written statement on Tuesday, November 12, 2024. He further emphasized the importance of prioritizing consumer protection by enhancing market conduct supervision. The landscape of the fintech industry in Indonesia continues to exhibit dynamic development. Nevertheless, fintech innovation persists due to a supportive regulatory framework, particularly following the implementation of the Financial Sector Development and Strengthening Act (UU P2SK) and its implementing regulations. The fintech industry is increasingly adopting a prudent approach, with a clearer trajectory towards profitability. Companies are implementing sustainable business strategies, enhancing operational efficiency, and concentrating on high-value products. A commitment to the principles of Governance, Risk Management, and Compliance (GRC), along with an exploration of Environment, Social, and Governance (ESG) principles, enables fintech firms to navigate challenges and seize opportunities. This, in turn, strengthens the role of the fintech sector in promoting financial inclusion and economic growth in Indonesia.

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