The Impact of Fintech Adoption on Digital Economic Growth in Indonesia
DOI:
https://doi.org/10.35335/4yrqkz85Keywords:
Fintech adoption, Digital economy, Financial inclusion, Economic growthAbstract
This research investigates the impact of financial technology (fintech) adoption on digital economic growth in Indonesia, focusing on its role in enhancing financial inclusion, supporting micro, small, and medium enterprises (MSMEs), and accelerating digital transactions. Using a mixed-methods approach that combines quantitative data analysis with qualitative insights, the study examines fintech development over the last decade with particular attention to urban–rural differences. The findings reveal that fintech adoption has significantly contributed to Indonesia’s digital economy by reducing barriers to financial access, lowering transaction costs, and fostering broader participation in digital commerce. While urban areas demonstrate faster adoption due to stronger infrastructure and higher digital literacy, rural areas are also increasingly benefiting from fintech solutions, particularly in credit access and mobile-based payments. However, challenges such as limited data availability, the rapidly evolving nature of fintech innovations, and shifting regulatory frameworks present notable constraints. Overall, the study concludes that fintech adoption is a key driver of Indonesia’s digital economic growth, with long-term potential to enhance national competitiveness, provided that policies and business strategies continue to support an inclusive, sustainable, and secure digital financial ecosystem.
References
Ahmad, M., Majeed, A., Khan, M. A., Sohaib, M., & Shehzad, K. (2021). Digital financial inclusion and economic growth: Provincial data analysis of China. China Economic Journal, 14(3), 291–310.
Arner, D. W., Buckley, R. P., & Zetzsche, D. A. (2018). Fintech for financial inclusion: A framework for digital financial transformation. UNSW Law Research Paper, 18–87.
Barata, A. (2019). Strengthening national economic growth and equitable income through sharia digital economy in Indonesia. Journal of Islamic Monetary Economics and Finance, 5(1), 145–168.
Basu, S., Fernald, J. G., Oulton, N., & Srinivasan, S. (2003). The case of the missing productivity growth, or does information technology explain why productivity accelerated in the United States but not in the United Kingdom? NBER Macroeconomics Annual, 18, 9–63.
Chiu, I. H. Y. (2016). Fintech and disruptive business models in financial products, intermediation and markets-policy implications for financial regulators. J. Tech. L. & Pol’y, 21, 55.
Domazet, I., & Lazić, M. (2017). Information and communication technologies as a driver of the digital economy. Glasnik Srpskog Geografskog Društva, 11–19.
Hastuti, I. S., & Jauhari, A. K. (2021). Middle economic growth towards to development of e-commerce in Southeast Asia. Journal of Economic Empowerment Strategy (JEES), 4(1), 1–6.
Herbert, G., & Loudon, L. (2020). The size and growth potential of the digital economy in ODA-eligible countries.
Jurriëns, E., & Tapsell, R. (2017). Challenges and opportunities of the digital ‘revolution’in Indonesia. Digital Indonesia: Connectivity and Divergence, 2020, 275–288.
Keller, W. (2004). International technology diffusion. Journal of Economic Literature, 42(3), 752–782.
Leatham, K. R. (2012). Problems identifying independent and dependent variables. School Science and Mathematics, 112(6), 349–358.
Lukonga, I. (2020). Harnessing digital technologies to promote SMEs in the MENAP region.
Madan, N. (2020). A review of access to finance by micro, small and medium enterprises and digital financial services in selected Asia-Pacific least developed countries.
Maherali, A. (2017). Financial inclusion, digital payments and their impact on income and tax revenue around the world. Harvard University.
Olabode, S. O., Olateju, O. I., & Bakare, A. A. (2019). An assessment of the reliability of secondary data in management science research. International Journal of Business and Management Review, 7(3), 27–43.
Peng, H. (2020). The Co-Evolution of the Innovation and Regulatory Regime in Socio-Technical Transitions: The Case of the Chinese Individual Lending Transition. The University of Manchester (United Kingdom).
Pizzi, S., Corbo, L., & Caputo, A. (2021). Fintech and SMEs sustainable business models: Reflections and considerations for a circular economy. Journal of Cleaner Production, 281, 125217.
Sadigov, S., Vasylieva, T. A., & Rubanov, P. M. (2020). Fintech in economic growth: cross-country analysis. Varazdin Development and Entrepreneurship Agency; University North ….
Setiawan, B., Nugraha, D. P., Irawan, A., Nathan, R. J., & Zoltan, Z. (2021). User innovativeness and fintech adoption in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 188.
Song, X.-L., Jing, Y.-G., & Akeba’erjiang, K. (2021). Spatial econometric analysis of digital financial inclusion in China. International Journal of Development Issues, 20(2), 210–225.
Stigson, P., Dotzauer, E., & Yan, J. (2009). Improving policy making through government–industry policy learning: The case of a novel Swedish policy framework. Applied Energy, 86(4), 399–406.
Suryono, R. R., Budi, I., & Purwandari, B. (2021). Detection of fintech P2P lending issues in Indonesia. Heliyon, 7(4).
Yang, H. (2019). Fintech as a Strategy of Financial Inclusion in the Age of Digitalization. Journal of APEC Studies, 11(2), 93–106.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Danika Estiana, Kian Khalif Rayhan, Nugraha Althaf (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
