Jahja Setiaatmadja, President Director, Bank Central Asia
Indonesia’s growing economy and evolving technology attracts investors
In this Global Platform video, Jahja Setiaatmadja, president director of Bank Central Asia, talks about the importance of digital technology, such as online banking and digitalised transactions, in adapting to the rising use of fintech in the market. Indonesia’s target growth rate is set to exceed the global average, at 5.3% for 2020. This, along with an inflation rate of only 3% and a stabilised exchange rate, will help attract investors in the coming years. Furthermore, the growth of retail, fashion, food and tourism infrastructure is expected to attract rising rates of foreign investment moving forward.
Indonesia can really play a big role in Asia because the demography is big. Indonesia has around a 260m population with a big economy and with a growing rate this year and the following year. And if you look at digitalisation, it's very advanced. We are catching up with China and other countries which are advanced in technology. And if you look on the effort of the government growing the infrastructure, the tourism, I think that will attract people from the whole Asia and Europe, and US and then with that in mind we believe that Indonesia will become more and more famous and investors will come to support the whole economy. Government policy can maintain the inflation rate around 3% now and then they can stabilise the exchange rate. US dollar to rupiah around 14,000. This is very important for the investor point of view, and also for the locals, because most of the raw materials we have to import it's valued in US dollars. And with the target of government, next year, 2020, 5.3%. The global growth is only around 2.9% growth rate. So we can exceed the global world growth and I believe that we can have a sustainable growth in the next ten years starting from 2019. New technology has to be in place because you see fintech started to come into the market. It is proven that 98% of the total transactions in BCA is already through digital and non-bank transactions. They use all the digitalised applications, they use internet banking for all the transaction, they use ATM machines outside of the branch. That's proving that people would quite fast adopt new technology. Today, on average, we can have about 30m transactions a day. It's been growing from around 25m last year. The fintech companies, they are strong on providing a platform, and customers would also like to use this platform to have many options to get services. All the fintechs should have a bank account. We try to cooperate with them. That makes it a win-win situation. I'm very excited. With the economy of Indonesia, I believe that Indonesia can establish growth in the future. Retail, fashion, food and tourism infrastructure are the sectors that are very prospective inviting the foreign investors to come to Indonesia.