South East Asia‘s largest economy, Indonesia, is seeing both public and private sectors investing in applying blockchain technology to address issues surrounding the storage and application of data within the country in a number of sectors, reports Reuters.
The problems have arisen due to the sheer volume of data, which is now generated by a population of 250 million inhabitants across a huge total of 17, 000 islands. The Indonesian Financial Services Authority has now gathered a team to investigate how blockchain can support the country’s industries.
Tech firm Online Pajak has launched a solution via a blockchain-driven app to assist in simplifying the country’s tax sector. The app allows customers to share encrypted data with the tax and treasury office as well as banks. Company founder, Charles Guinot, points out that the app will not only reduce paperwork and errors but fill current gaps in the current system.
He suggests: “Today in Indonesia, there’s no proof you’ve paid.” The new system will ensure an accurate and clear record of payment for private individuals and companies alike.
Elections is another area being looked at, having been a problem within the country in the past due to fraud and polls not being able to reach a population that is widely dispersed across Indonesia’s many islands. An Australian firm, Horizon State, has found a solution to some of these problems with a new app concept due to launch later this year, enabling direct polling on local policy issues.
Banks are looking at DLT with more interest, as discovered by a survey published last year indicating that about 80% of financial institution executives see blockchain impacting future markets. Rico Ustahavia Frans, director of digital banking and technology at Bank Mandiri, Indonesia’s second-biggest bank by assets, said it was currently looking at applying blockchain, once regulators had formulated guidelines for banking and financial institutions.
The Indonesian government reports that is now looking into how it can disperse funds to numerous recipients in the farming sector using the new technology.