Jakarta, July 24, 2024 – Indonesia is experiencing rapid transformation in its payment systems, driven by digital payments. The latest innovations in digital finance are further strengthening Indonesia’s position on the global stage. This was the central theme of the Digibank Summit Indonesia Edition held on July 24, 2024.

A highlight of the event was a panel discussion titled “What’s Next: The Future of Payments in Indonesia,” featuring Tigran Adiwirya, co-CEO of D3 Labs. The discussion covered various aspects of payment evolution in Indonesia, including mobile money technology, the cashless revolution, blockchain-based payments, and real-time payments.

Tigran highlighted the significant potential of blockchain technology in revolutionizing Indonesia’s payment systems. While the primary focus has been on retail payments, he emphasized the transformative impact of blockchain on wholesale payments. By automating reconciliation, transaction settlement, and regulatory reporting processes, blockchain can significantly enhance efficiency and cost-effectiveness in the financial industry.

“Global Banks has been adopting blockchain to streamline the back office operation by automating processes like reconciliation and settlement, including regulatory reporting,” Tigran said at the Digibank Summit Indonesia Edition. “JP Morgan is settling 1 billion USD daily for its enterprise client, so reassure us of its benefits without jeopardizing the risks aspect.”

Bank Indonesia, the country’s central bank, is also crucially shaping the future of payments. The bank’s commitment to developing central bank digital currency (CBDC), the Digital Rupiah or Project Garuda, leveraging blockchain technology, marks a significant step forward. This initiative is expected to bolster confidence among financial institutions and drive broader adoption of blockchain solutions.

“By having a clear stance to leverage blockchain technology to run the digital rupiah potentially. Most importantly, we will recognize our Digital Rupiah as legal tender. This will send positive signals to Financial Institutions and encourage them to explore the potential use of Blockchain to run their operation,” said Tigran.

While blockchain holds substantial promise, it is just one piece of the puzzle. The broader payment ecosystem is also evolving rapidly, driven by advancements in electronic money, cashless transactions, and real-time payments. These innovations collectively transform how individuals and businesses conduct financial transactions.

Beyond Blockchain: A Multifaceted Approach

Indonesia’s large and unbanked population presents unique opportunities for digital payment solutions. Electronic money services have the potential to bridge financial inclusion gaps and empower millions. Additionally, the government’s push towards a cashless society accelerates the adoption of digital payment methods across various sectors.

Innovation in digital payment systems is not limited to blockchain technology. Mobile money technology and the cashless revolution also play significant roles in this development. Implementing real-time payments further strengthens Indonesia’s digital financial ecosystem, offering convenience and speed for consumers and businesses.

Indonesia’s strategic focus on digital payments and a supportive regulatory environment position the country as a global leader in financial technology. As investments continue in infrastructure and digital literacy, the future of payments in Indonesia looks increasingly promising.

By embracing cutting-edge technologies like blockchain and fostering an ecosystem conducive to innovation, Indonesia is poised to shape the future of payments domestically and globally.

Tigran Adiwirya’s presence at the Digibank Summit Indonesia Edition underscores D3 Labs’ commitment to advancing payment technology in Indonesia. With innovative and technology-driven perspectives, D3 Labs continues to drive digital transformation in Indonesia’s financial sector.

The event reflected high optimism and enthusiasm about the future of payments in Indonesia. With support from various stakeholders, including the government, financial institutions, and technology companies, Indonesia is on track to become a leader in digital payment innovation in Asia and globally.