In August 2023, ASLI RI had the privilege of hosting a distinguished expert in the realms of digital technology and financial institutions. This event marked the revival of “ASLI RI Ngobrol Bareng,” a video talk show that had been on hiatus for some time. Our episode brought together Dr. Hendrikus Passagi, a former Regulator at the Indonesian Financial Services Authority (OJK) and a seasoned expert in futures exchange, as our esteemed guest speaker. Facilitating this engaging conversation was none other than the renowned social media content creator, Phillia Alethea, serving as our host.
This episode of ASLI RI Ngobrol Bareng ventured into several critical dimensions of the digital landscape, shedding light on the pivotal role played by digitization and the Internet of Things (IoT) in today’s business operations. Our discussion delved deep into the imperative of safeguarding consumer data against fraudulent activities and explored the current and prospective status of cryptocurrencies in Indonesia, offering insights from both legal and economic perspectives.
Key Concerns in the Digital Business Arena
Dr. Hendrikus Passagi, drawing from his extensive background as a former OJK Regulator with academic expertise in economics and law, underscored the paramount importance of safeguarding consumer funds and ensuring data security, particularly within the financial sector. He emphasized three primary areas of concern that should command the attention of any enterprise entrusted with public funds, serving as pillars for upholding the nation’s economic and financial stability:
- Securing Public Funds: The assurance of public fund security stands as a non-negotiable priority. Any lapse in this regard opens the door to embezzlement and misuse, diverting these essential resources from their intended purposes.
- Curbing Misuse of Public Digital Data: The prevention of public digital data misuse assumes critical significance in maintaining trust and security within the digital ecosystem.
- Safeguarding Financial Stability: Dr. Hendrikus drew on the stark lessons of the 1997 Asian Financial Crisis, underlining the need to ensure that financial industry activities do not become catalysts for destabilization.
Dr. Hendrikus also acknowledged the rapid proliferation of the internet and digitization across Indonesia, particularly through entities such as the Indonesian Neo-Cooperative Association (ANKI), composed of digitized cooperative members. He emphasized the pivotal role of digitization in combating fraudulent activities and advocated for the adoption of robust security tools, such as digital certificates, closely intertwined with digital signatures, to fortify the digital realm. While the use of digital certificates is pivotal in business, the adoption of digital signatures remains non-mandatory. Dr. Hendrikus expressed optimism that forthcoming legislation would necessitate the use of digital signatures, especially in today’s digitally-driven economy. He further recommended the implementation of multi-factor authentication as a more resilient security measure, given the escalating sophistication of cyber threats.
Cryptocurrency situation in Indonesia
Despite the massive popularity of cryptocurrency, as of right now, cryptocurrency is only valid as a tradeable commodity. It is neither a means of payment nor a legal tender in Indonesia. However, Dr. Hendrikus argues that one day, the status of cryptocurrency can change in the future, making it a valid form of payment. Cryptocurrency trading is currently still regulated under the Indonesian Commodity Futures Trading Regulatory Agency (BAPPEBTI) and uses a business model involving topping up funds almost like a digital wallet, but Dr. Hendrikus is confident that soon it will be under the regulation of OJK, where transactions involving cryptocurrency trading can be more secure. He highlights the fact that the youth prefers practical solutions that cryptocurrencies offer, such as ease of transaction when traveling abroad and hassle-free access to cryptocurrency.
Want to know more?
In this episode of the talk show, Dr. Hendrikus also talks about his experience as a Regulator and an academic, the nooks and crannies of doing business digitally, and the futures exchange of Indonesia. If you’re interested to know how financial regulations work and how they can affect digital business, watch the video here.
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Last modified: September 12, 2023
