Bitcoin, Cryptocurrency

Indonesia is Keen to Fix its inaccurate Data with Blockchain Technology

Indonesia has shown its keen interest in blockchain technology to fix its inaccurate data. The country has not been able to keep accurate records like other emerging economies. This was primarily due to lack of expertise apart from the availability of resources. As a result, this poses a big challenge to them and the private and public sectors are now focusing on overcoming the challenges. This is one more instance of how the technology is getting adopted despite skepticisms about it.

Best Known Technology

The advantage with blockchain technology is that it offers a shared record of information that is not only maintained but also updated through a computers’ network, Reuters reported. The technology provides decentralized authority whereas another technology provides centralized authority. Indonesia is looking to use this key factor in its tax system and Online Pajak, a tech firm, has already unveiled a blockchain-power application. That would enable customers to share encrypted tax data with institutions. This included tax and treasury offices apart from the commercial banks and the central bank. The technology is also hailed for its transparency and for quickness apart from cost savings.

The country thinks that the blockchain technology-powered app could cut down the error rate and reduce paperwork. That would mean that taxpayers have paid their dues and that is for sure. This was the comment given by Charles Guinot of Online Pajak founder. This should be a great relief to the people as there is no proof that taxpayers have paid their taxes earlier. That suggested the current status of the data in the country.

Aside from that, the verification process of blockchain could also come in handy to address doubts about elections hangover in countries such as Indonesia. An Australian firm, Horizon State, indicated its intention to introduce a phone application in July on Sumatra Island. That would enable direct polling on different domestic policy issues. The company’s co-founder, Nimo Naamani, said that the verification system with the help of blockchain could cut down the voting fraud, as well as, address the electrical challenges that big populated countries are facing.

It is not only the Indonesian government, but the banking sector to is keen on technology. This was demonstrated in a survey published last year by Bain and Company. The survey pointed out that 80 percent of financial institutions’ executives believe that blockchain technology could impact markets significantly.

Trade Financing

Indonesia’s second-largest bank, Bank Mandiri’s digital banking and technology director, Rico Usthavia, disclosed that it is looking onto introducing blockchain for trade financing. However, lenders are waiting for regulators to provide guidelines. The country’s policymakers expect the technology to cut down graft in public programs. This included subsidies that are allocated to the States.

Director of the Financial Services Authority, Fithri Hadi, said that a dedicated team was established to study blockchain technology and how it could support the industry. The technology is gaining traction in emerging economies like Estonia that has deployed it since 2012 for a variety of services.…

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