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Indonesian public and private sectors explore uses of blockchain

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In Indonesia, a country with 250 million people living on 17,000 islands, the private and public sectors are actively exploring the blockchain. technology to overcome the challenges of data management for everything from food production to election results to trade finance.

The government has clearly played a leading role in the exploration of blockchain technology. Fithri Hadi, the director of financial innovation for the country's Financial Services Authority, said the regulator has a dedicated team to study how blockchain technology can help the financial services industry of the country. country, reports Reuters.

Improving Government Accountability

Government policy makers also hope that technology can reduce corruption in the country's public programs, one of many areas where blockchain could be used to improve accountability.

Estimates of crop production, for example, may be overestimated as agricultural subsidies are allocated on the basis of harvests from the previous year. Estimates are difficult to verify. The government is also studying the use of technology to verify information from funding recipients.

Finance Minister Sri Mulyani Indrawat said his staff was investigating the use of blockchain technology for microcredit programs and grant disbursements and to identify groups that need to be used. government benefits.

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Improved verification of the election

Blockchain technology can also improve verification of election results.

Horizon State, a polling service based in Australia, intends to introduce a telephone application on the island of Sumatra in Indonesia in July, allowing a direct survey of local policy issues .

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The Horizon State Community Engagement Platform enables constituents, including staff members and members, to participate in collaborative decision-making processes for a larger economy, decentralization and convenience. According to Nimo Naamani, co-founder of Horizon State, the voting system could reduce electoral fraud and solve the problems of countries whose populations are scattered in the Indonesian islands.

Jamie Skella, Product Manager for Horizon State, recently welcomed participants to the first Global Regional Forum on Remittances, Investment and Development in Asia-Pacific to vote in the RemTECH Industry Choice Award, qualifying the event to encourage discussion about the merits and cases of blockchain technology use.

Private Initiatives on the Rise

Several private initiatives are also underway throughout the country.

Online Pajak, an electronic tax filing solution, has implemented a blockchain application that allows customers to share encrypted tax data with treasury bureaus and banks. Charles Guinot, founder of Pajak Online, said the tool, for the first time, will guarantee taxpayers that they have paid their taxes.

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OnlinePajak provides an additional layer of authentication for election results. The user creates an API key to authenticate the market, and then creates a user ID to add a new user to the list of users in that market. Bank Bank Mandiri, Indonesia's second-largest bank, is studying the use of blockchain technology for trade finance, according to Rico Usthavia Frans, director of the bank's digital banking and technology bank. Lenders are currently waiting for guidelines from regulators.

Meanwhile, Bank Central Asia (BCA), Indonesia's largest private bank, has invested Rs 200 billion (about $ 15 million) in startups and financial technology companies. The bank is creating Central Capital Ventura, which owns 100% of the new venture capital company. According to an official statement from the BCA submitted to the Indonesia Stock Exchange, the investments will directly benefit BCA and its financial services offerings in the country.

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Blockchain technology has been introduced in other emerging markets, such as Estonia, where it has been deployed since 2012. Its applications include the systems of judicial, legislative, national health and commercial codes.

Iwan Djuniardi, director of transformational technology for the tax office, warns that the adoption of technology by Indonesia could be slower as it takes time to deal with management changes. Even cloud technology is still under debate in the country.

Image from Shutterstock to photo

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