Jakarta, July 17, 2023 - Indonesia has the potential of a growing digital economy and is the largest in Southeast Asia. In 2025 it is projected to reach USD 146 billion before growing eightfold by 2030. While digital financial services are expected to continue to grow, several obstacles still need to be addressed collectively through collaboration between regulators and industry players.
"Based on Microsoft and International Data Corporation (IDC) research, it is known that there are still 46% of Indonesians who do not trust digital services. In fact, customer trust is very important to provide a safe and comfortable digital transaction experience. Digital identity technology is one of the keys to developing customer trust and growing the digital economy in Indonesia," said Dickie Widjaja, Deputy Secretary General I of the Indonesian Fintech Association (AFTECH) in a Fintech Talk discussion session with PT Indonesia Digital Identity (VIDA) last Friday (14/7).
Digital identity has become the foundation for progress and growth in the digital finance industry. Eko Rizanoordibyo, Executive Analyst of the Directorate of Digital Financial Innovation, Financial Services Authority (OJK), explained, "Digital identity refers to information used as electronic credentials to prove legal identity. In addition to providing trust and security, digital identity can protect user identities and enable safe, efficient and inclusive financial services."
One of the forms of digital identity that can provide security, prevent fraud, as well as have an impact on business development is a digital signature that can authenticate the identity of the signer and ensure the integrity of the signed document or transaction. Business workflows become more efficient by signing digital documents that are guaranteed security, eliminating the need for physical documents.
Ahmad Taufik, VIDA’s Head of Product Solutions, said, "Various modes of crime in the digital world will always exist, therefore digital security technology must continuously evolve. VIDA Sign facilitates safe and efficient electronic transactions while ensuring legal validity and authenticity. We always implement end-to-end security with the highest standards that are always audited by Ministry of Communication and Information Technology."
According to Fajar Maulana Putra, Policy Analyst at the Directorate General of Informatics Applications, Ministry of Communication and Information Technology (Kominfo), the legal framework for digital signatures has been regulated by Law Number 11/2008 on Electronic Information and Transactions (UU ITE) and its implementing regulations. "Digital signatures that meet the legal requirements are recognized as having the same legal force as traditional signatures. It is a secure and verifiable method of ensuring authenticity, integrity, and enforceability," he said.
The development of digital identity in Indonesia is still in the early stages, but the potential for this technology to have a positive impact on the country is enormous, such as the use of digital signatures as a powerful tool in helping to secure documents or electronic transactions, reduce fraud and identity theft, also encourage business and economic growth.