Digitalization Brings Benefits to Regions

KOMPAS/KRISTIAN OKA PRASETYADI

Kasman (40) shows three of the four Indonesian standard QR codes (QRIS) that he has as a means of payment at his stall at Pasar Segar Paal II, Manado, North Sulawesi, Thursday (25/2/2021).

One by one, problems related to digital communication access can be resolved. Although, some obstacles remain, the progress of digital technology cannot be stopped. All processes will become more efficient and transparent.

We welcome the initiative of Bank Indonesia (BI) to launch the Team for the Acceleration and Expansion of Digitalization in Regions (P2DD). Currently there are 110 P2DD teams in 542 autonomous regions. The task of this team is to accelerate and expand the digitization of financial transactions in the regions. The government is preparing a legal umbrella to accelerate the digitization of the regional financial transactions.

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BI\'s efforts are also supported by the government through the State Budget (APBN), especially in opening network access in frontier, underdeveloped and remote areas. The government has allocated Rp 17 trillion until 2024 for the program. Previously, the government expanded internet access through the development of the Palapa Ring fiber optic network.

The internet superhighway has been in operation since 2019 but the use of the facility should be further increased because the utilization is still relatively low. President Joko “Jokowi” Widodo has asked that the internet network reach the residents\' homes. Although internet access is still hampered, the backbone of the communication network has been built.

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We have witnessed that all the requirements, starting from the facilities, legal umbrella, budget, to human resources, have been mobilized for the digital transformation. Everything is there, but why does digitalization remain slow?

KOMPAS/MACHRADIN WAHYUDI RITONGA

Visitors see one of the items of micro, small and medium enterprises on display at the booth of the Indonesian Made Proud National Movement (Gernas BBI) and the West Java Craft Week at Trans Studio Mall, Saturday (3/4/2021).

In some cases, we often hear that digital transformation is hampered by a handful of people who still want to take advantage of the situation. Digitalization will inhibit and reduce practices that could lead to corruption. It seems that the intention to make transactions more efficient and transparent is defeated by the willingness of those who want to maintain manual and conventional transactions, which can be easily manipulated.

If BI and the government plan to give special attention to the digitalization of regional financial transactions, of course, such problems have to be resolved. From the various discourses that have emerged, they want regional finances to be managed more efficiently and transparently to prevent irregularities.

Also read: Indonesian Digital Economy Center Built in Batam

We certainly hope that the team formed by BI can immediately work to improve regional financial transactions. With the existing system, resources and cooperation with other financial institutions, the central bank will certainly be able to make a change. If all run according to plan, the digitization will give much benefit to the regions because their local revenues could be increased by 50 percent, according to an expert.

Regions should no longer delay digital transformation because sooner or later the digital technology will be implemented. The delay will only waste time. Especially when we eventually use blockchain technology and transparency can no longer be prevented. For sure, the flow of money, wherever it goes, can be detected.

This article was translated by Hendarsyah Tarmizi.