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Home > News > Digitalisation of the financial sector: Report from Indonesia
  • 27.04.2021
  • General

Digitalisation of the financial sector: Report from Indonesia

Together with its partners, KfW continues to drive forward the digitalisation of development cooperation and has set itself the goal of anchoring Digital 4 Development in its portfolio. Digital approaches cannot only significantly and sustainably increase the efficiency and effectiveness of projects. They also help partners meet the challenges of the accelerating digital transformation.

A current example is the “Promoting Innovative Financial Inclusion Programme” (PIFIP) in Indonesia. On behalf of the BMZ, KfW is supporting the digitalisation process in the financial sector with a promotional loan of EUR 200 million.

A variety of complementary digital building blocks are intended to ensure that micro, small and medium-sized enterprises as well as large sections of the rural population – especially young people and women – have improved access to financial services. Digital measures include the introduction of an electronic identification system (e-KYC), the digital execution of remittances and credit assessment, as well as money laundering prevention and consumer protection. Digitalisation also enables better supervision of banks’ risks and more effective consumer protection in terms of preventing household indebtedness.

This project shows how KfW’s many years of financial expertise and growing digital competence can help to position its partners for the future. KfW is already working on topics such as blockchain and open data and is developing new forward-looking solutions together with its partners and in the BMZ DigiLab.

To KfW-partner page