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THE DEVELOPMENT of digital technology is one of the answers so that humans can continue their activities even though they do not meet face to face in the midst of the COVID-19 pandemic.
Activities in various sectors use digitization including financial services. Bank Indonesia noted that banking transactions via SMS, mobile phones, and internet banking increased by IDR39.87 trillion in 2021 or 44.74% compared to 2020.
The government also continues to encourage the financial services sector to carry out digital transformation which is believed to provide benefits for both customers and banks. By carrying out digital transformation, banks can provide services such as storage, investment, lending, and insurance payments more efficiently to customers.
In addition, customers also get convenience in receiving services such as transfers, financial management, e-commerce payments, and booking transportation and lodging tickets. Operationally, by carrying out digital transformation, banking becomes more open and agile. Revenues from customers can also increase with the presence of new offers, especially if banks are successful in creating a digital ecosystem.
The government through the Financial Services Authority (OJK) continues to accommodate the digitization of the financial services sector including banking by issuing Financial Services Authority Regulation (POJK) Number 12 of 2021 concerning Commercial Banks and POJK Number 13 of 2021 concerning the Implementation of Commercial Bank Products.
In addition, OJK has also issued a roadmap and blueprint for banking digitization to further encourage the process. In a report published in December 2021, DS Innovate estimates that the global market for digital banking will reach US$12.1 billion and may increase to US$30.1 billion in 2026. This is in line with reports from Google, Temasek, and Bain which mention Indonesia’s digital economy will grow from US$44 billion in 2020 to US$124 billion in 2025.
One of the digital banking players, PT Bank Digital BCA, which launched the Blu platform a year ago, has been able to attract more than 806,000 customers, which is targeted to increase to 1 million by the end of 2022.
Of the total 806 thousand users, 49% of users are Generation Z, 39% are millennials, 11% are Generation X, and the remaining 1% are baby boomers. BCA will continue to expand the coverage of Blu customers, including outside Java, because Blu services can be accessed anywhere as long as there is internet infrastructure.
“Efforts to expand customer coverage are currently being carried out by advertising, introducing our features and promotions by targeting people throughout Indonesia, with the hope that they can immediately download and register as Blu customers,” said BCA Digital President Director Lanny Budiati.
The Ministry of Communication and Information (Kemenkominfo) in 2022 targets to build 5,623 base transceiver stations (BTS) to provide 4G internet networks in villages and sub-districts throughout Indonesia.
To date, around 26.2% or 1,418 BTS of the target have been built, with details of 1,037 BTS being built in villages or sub-districts in disadvantaged, leading, and outermost areas (3T) and 381 BTS being built in non 3T areas.
In addition to expanding coverage, data security is also a concern for banks that must maintain customer trust so that they are willing to continue to use digital banking services. This is because digital transformation, which makes it easy for customers to access banking services, also has dangers and risks, so a legal umbrella is needed to protect users of digital technology.
Lanny said that as part of the BCA Group, in data management, his party tries to use the same standards as BCA, both in terms of IT infrastructure and in terms of management.
However, customers must also be increasingly aware of the importance of protecting personal data, such as PIN, OTP, and CVV codes which should only be known by the customer himself and not shared with other people, including people claiming to be bank officers.
“We continue to educate customers regarding this matter, whether it is collaborating with BCA or with other banks regarding education on data confidentiality. We hope that there will be fewer cases of fraudulent transactions in the future,” she added.
Center for Indonesian Policy Studies (CIPS) researcher Pingkan Audrine Kosijungan said in the midst of the digital transformation process in various sectors, the protection that must be given to the public or consumers does not only include consumer protection in a digital economic landscape, but also the protection of civil liberties in a democratic system that binds the economy.
Both business actors, regulators, and consumers must know their respective roles, rights and obligations in conducting digital transactions and how to respond to cases of consumer rights violations.
Law Number 8 of 1999 concerning Consumer Protection is deemed necessary to be revised because it is not in accordance with the changes, challenges, and risks arising from the fast-paced digital transformation process.
Based on CIPS research, although the PK Law in general has outlined the rights of consumers, this law still does not accommodate consumer rights in digital transactions because several provisions related to digital transactions have not been adequately discussed. Revisions are needed to respond to various developments in digital transformation.
On the other hand, the Chairperson of the Indonesia Cyber Security Forum (ICSF) Ardi Sutedja said the Kominfo policy that requires Electronic System Operator (PSE) companies to register with the government is one of the key policies to strengthen the protection of public data in the digital space.
In addition to ensuring the public is safe from the arbitrary actions of unregistered PSEs, this rule can also contribute to state revenues through taxation.
Many people think that the cross-border industry is immune from tax obligations in countries where these unregistered PSEs operate. This understanding is very wrong because users of the PSE who often “sell themselves without knowing it and get nothing in return” can be harmed, while the PSE can gain a lot.
This PSE registration obligation is also an initial effort to protect the public from misuse and commercialization of personal data that consumers enter when registering.
The protection of Human Rights (HAM), according to Ardi Sutedja, is the focus of Kominfo’s policy of requiring PSE to register. [antaranews/photo special]
