What is the Contribution of Fintech Lending to the Indonesian Economy?

Disbursement of P2P lending Fintech (financial technology) credit reached Rp 7.64 trillion by the end of the second quarter of 2018, with a significant portion channeled to the trade and agriculture sectors. Meanwhile, investment in Indonesian Fintech reached Rp 5.69 trillion.

According to a study by the Institute for Development of Economics and Finance (INDEF) and the Indonesian Fintech Association (AFTECH), using Input-Output (I-O) analysis, the development of Fintech in Indonesia has increased the Gross Domestic Product (GDP) by Rp 25.97 trillion, both directly and indirectly. The study also showed that Fintech development in Indonesia increased household consumption by Rp 8.94 trillion.

Furthermore, the presence of Fintech has increased labor compensation, in the form of salaries and wages, by Rp 4.56 trillion and absorbed 215,433 workers in tertiary and primary sectors such as agriculture.

(Read Databoks: How Much is the Value of Fintech P2P Lending Loans?)