2 Key Reasons Why 2018 Is the Year of Blockchain for Indonesiaby Fintech News Singapore August 28, 2018
Indonesia’s tech scene has finally hit its stride, and the industry is now rife with startups and tech businesses that aim to solve problems unique to the Indonesian ecosystem.
One area of tech of high interest in Indonesia is blockchain, the technology underlying cryptocurrencies that have taken the world by storm in 2017. The technology is the up and coming tech trend of 2018 it seems, and Indonesia already has a strong hand in this pie, starting with startups like those featured here.
Within the past few months, there have been huge industry-changing developments in Indonesia’s blockchain that could, with proper cultivation, bring blockchain development into a more prominent, streamlined and potentially disruptive stage in Indonesia.
1. Bank Negara Indonesia Now Use Blockchain for Trade Finance and Remittance
Those in the know have said for years that blockchain can be used to streamline many legacy systems prevalent in finance, with immutability as a key point of interest for any processes that involve more than one organisation. Taking these lessons to heart, Bank Negara Indonesia (BNI) has decided to incorporate blockchain technology for trade finance and remittance products.
The central bank has already taken their leap in May this year with the signing of a Memorandum of Understanding (MoU) between the Treasury and International Director, Rizal Budidarmo and the CEO of PT Adamobile Solutions Networks, Adam Suhermanin.
The central bank will be the first in the nation to apply blockchain technology.
Rico Rizal Budidarmo, MD in BNI, said that:
“The use of blockchain in trade finance transaction can provide easiness in the form of document access and validation that can be done in real time through an integrated system among its members.”
“While for remittance transactions, among them is for real time and sage data exchange as the data has been encrypted to all of the blockchain members.”
2. Indonesia Launches Its Very Own Blockchain Hub
Earlier this month, an Indonesia Blockchain Hub was just launched as a dedicated space to help the promotion and development of blockchain technology.
The Indonesia Blockchain Hub’s goal is to bring together the different Indonesian Blockchain communities, to drive innovation, and to provide education on blockchain technology. It is supported by HARA, a blockchain for social impact project, the Indonesian Blockchain Association (ABI) and the Indonesian Chamber of Commerce and Industry and the government agency BEKRAF.
Yos Ginting, member of the supervisory board of the ABI said,
“We believe that the set-up of a place like Indonesia Blockchain Hub will accelerate the exchange of information. It can be used to [help] make Indonesia a country that will reap the benefits [of blockchain technology] as early as possible.”
“I think this is the time where our agency can help to support and to foster the blockchain ecosystem, and most importantly we will become the government agency that will echo the importance of the blockchain ecosystem to the other government institutions as well.”
Regi Wahyu, CEO of HARA said,
“This is a historical moment for Indonesia. This shows that Indonesia is ready for blockchain technology. The Indonesia Blockchain Hub will have a huge effect on how the blockchain ecosystem will grow in Indonesia.”
Having a centralised location for blockhain startups and experts to congregate can be a great way to bring the industry’s brightest minds together, particularly to create solutions that are unique to the Indonesian people.
Both developments mark important stages for Indonesia’s blockchain—BNI taking such a hard stance on blockchain could be the key motivator Indonesia’s banks need in order to take blockchain development seriously.
Meanwhile, the launch of the Indonesia Blockchain Hub could help cultivate important blockchain discussions unique to the nation, and most importantly, streamline the whole operation into one focused vision.
Featured image via Pixabay