The blockchain provides a shared record of information maintained and updated by a network of computers rather than a centralized authority. This approach to data management could help the Southeast Asian large economy, which has difficulties keeping accurate data and control over everything from food output to personal information for its 250 million people across 17,000 islands, according to Reuters.
The tax system is one such area and Online Pajak, a tech company, has launched a blockchain-driven app that allows customers to share encrypted tax data with institutions such as the tax and treasury offices, banks and the central bank. Indonesian banks are also looking at the technology: a survey by Bain & Company published in 2017 found about 80% of executives at ?nancial institutions think blockchain will signi?cantly impact markets, the online publication continues.
A representative from Bank Mandiri, Indonesia’s second-biggest bank by assets, said it was looking at applying blockchain for trade financing, but lenders were waiting for guidelines from regulators. Moreover, the Financial Services Authority has a dedicated team to study how blockchain could help the industry, and the government is looking at how it can use the technology directly to authenticate information from fund recipients.
The blockchain has gained traction in other emerging markets, such as Estonia, which has employed it for a number of services since 2012, however, the pace of adoption in Indonesia could be slower.
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