The Indonesian Financial Services Authority (OJK) has introduced an ambitious strategic roadmap for the 2024 to 2028 period to bolster the development and reinforcement of the country’s financial technology sector, including areas involving digital financial and crypto assets.

Innovation in this sector plays a crucial and strategic role in shaping the future of the country’s overall economy, states the OJK in the 82-page roadmap, in which the financial regulator also notes that it takes to heart its mission to foster an industry that is both “trustworthy and credible”.

A key objective of the roadmap, the OJK says, is to create an innovative, integrated and continuously evolving financial industry that prioritizes financial inclusion and consumer protection.

The regulator also outlines in the document its vision for a financial technology sector that not only supports economic growth but also integrates environmental, social and governance principles into its business practices.

To achieve these goals, the roadmap is divided into three phases. In the first two years, the regulator will focus on “foundation strengthening”, including establishing robust regulations and oversight mechanisms. Then, from 2026 to 2027, the OJK is committed to “accelerated development”, a period designed to speed up the growth and strengthening of the industry. And finally, in the last stage covering 2027 to 2028, it will focus on “sustainable growth”.

In the same document, Mahendra Siregar, chairman of the OJK board of commissioners, says the regulator believes such a roadmap is crucial for building an Indonesian digital ecosystem that is both resilient and inclusive and one that “will serve as a backbone for the financial sector and contribute significantly to national economic growth”.

The roadmap also lists the four main pillars on which the OJK says it will focus its efforts – regulation and development, supervision and enforcement, licensing and information, and innovation.

With the new roadmap, Indonesia hopes to be able to keep up with regional and global peers, says Hasan Fawzi, deputy commissioner for financial sector technology innovation, digital financial assets, and crypto assets.

“This roadmap is designed to navigate the complexities and opportunities within the global landscape,” he adds, “ensuring that Indonesia remains at the forefront of digital financial innovation while safeguarding consumer interests.”

Indonesia has made substantial progress in the digital financial sector over recent years, including rapid growth in the adoption of digital payment systems, with a significant increase in the use of e-money and mobile payment platforms, especially during the height of the Covid pandemic.

However, despite this progress, there are still some critical areas that require further development to ensure the long-term sustainability and inclusiveness of the digital financial ecosystem.

About 48% of the adult population in Indonesia, or roughly 97.7 million individuals, according to World Bank data, were unbanked or underbanked as of 2021.

With the new roadmap, Indonesia hopes to maintain its momentum in the burgeoning digital sector, while ensuring that all Indonesians are able to benefit from developments in the space.