Bridging Continents: Insights from Fintech for Social Impact Development in Luxembourg and Indonesia

As the Indonesian Fintech Association (AFTECH) representative, I recently had the privilege of representing Indonesia at the Nexus2050 event held at The Luxexpo in Luxembourg. My participation was part of the Catapult Southeast Asia (SEA) 2024 series, an initiative focused on fintech innovation and financial inclusion, organized by the Luxembourg House of Fintech (LHoFT) held on 24-28 June 2024.

Nexus2050 is an international hub that brings together stakeholders to combine ecological transition and digital technology and is a remarkable platform for showcasing the innovations and potential of Southeast Asia's fintech sector. I was part of an insightful panel session titled “Fintech in Southeast Asia: The Best Solution for Building Impact.” Along with my colleagues from the Philippines, Malaysia, Cambodia, Vietnam, Laos, and Thailand, this session highlighted the rapid growth of fintech in the Southeast Asia region and its potential for developing socially impactful technological innovations.

Moderated by Amor Maclang from the International Digital Economies Association, panelists discussed various ranged from Thailand's virtual banking licenses and open banking initiatives to Malaysia's leadership in blockchain and Islamic finance. Cambodia highlighted its blockchain-based QR code for financial transactions, promoting financial inclusion, while Vietnam explored opportunities in blockchain gaming and data sharing. Laos underscored fintech's role in advancing financial inclusion during its ASEAN chairmanship.

In Indonesia, fintech is more than just a financial service; it is an integral part of various ecosystems including e-commerce, online transportation, and small and medium enterprises (SMEs). This holistic integration is a key driver of our digital economy, fostering collaboration and innovation across sectors. During the panel, I emphasized that fintech in Indonesia is not just a standalone sector but a critical component of a larger, interconnected digital ecosystem.

AFTECH engagements in Luxembourg also included productive discussions with key figures such as Tom Theobald, Director of Development of the Financial Centre, Ministry of Finance Luxembourg, and Louis Muyser from Luxembourg Development Cooperation, Ministry of Foreign Affairs Luxembourg. These discussions centered on enhancing the role of associations like AFTECH in developing fintech innovations for impactful programs. Additionally, we provided mentoring to other fintech companies in the Catapult SEA program, highlighting the importance of shared knowledge and collaboration.

AFTECH member company, AiForsee, exemplifies the innovative spirit of Indonesian fintech. With its cutting-edge credit scoring model, AiForsee was selected as one of 10 fintech companies from Southeast Asia to be part of the Catapult SEA 2024 and to present at the Start-Up Stage of Nexus2050. This opportunity allowed AiForsee to pitch its innovative solutions to a global audience, demonstrating the potential of Indonesian fintech on an international stage.

The Catapult SEA 2024 program has been instrumental. It provided AiForsee with invaluable capacity-building sessions focusing on impactful funding strategies, business management techniques, and responsible financial services. Christian Limawan, Head of AiForsee, shared that the program offered a world-class perspective with local understanding, crucial for scaling their business with a social impact.

Reflecting on the Catapult SEA bootcamp held in Thailand earlier this year, AiForsee, represented by Data Engineer Agustinus Gladyawan Dwi Putra, was among the top 10 finalists who advanced to Luxembourg. This recognition is a testament to the innovative potential of Indonesian fintech companies and the importance of such international platforms in fostering growth and development.

The insights gained from this experience offer valuable lessons for both Luxembourg and Indonesia. Here are some key takeaways:

1. Global Perspectives with Local Insights: International programs like Catapult SEA offer fintech companies a global perspective while retaining local insights, a strategy both Luxembourg and Indonesia can emphasize.
2. Capacity Building and Mentoring: Structured programs like Catapult SEA are crucial for supporting fintech startups. Indonesia can benefit from adopting similar frameworks to nurture its fintech sector.
3. Impactful Funding Strategies: The focus on impactful funding in Catapult SEA provides a roadmap for Indonesian fintech companies to attract global investors interested in social impact.

Southeast Asia has promising prospects for fintech innovation, noting the diverse range of solutions from financial inclusion for SMEs to digital safe services, that joined the Catapult SEA 2024.

The continued partnership and exchange between Luxembourg and Indonesia therefore hold immense potential for driving social impact and economic growth. I encourage more Indonesian fintech startups to participate in international programs like Catapult SEA.

By leveraging collaborative efforts, holistic integration, and impactful funding strategies, we can create a sustainable and inclusive fintech ecosystem that benefits societies across continents. This journey is not just about financial growth; it’s about making a meaningful impact on communities worldwide.