Advancing an Inclusive Financial Ecosystem that Enables Responsible Digital Wage Payments for SMEs and Workers in Indonesia: an OJK-ILO Workshop

The workshop is intended to facilitate discussions on the challenges and opportunities faced by financial and payroll service providers in responsibly transitioning to digital wage payments.

Background

When implemented responsibly, digital wage payments – through bank accounts, mobile money wallets or prepaid cards – can benefit workers and enterprises alike. For enterprises, notably small and medium enterprises (SMEs), digital wages can promote payroll efficiency, transparency, and access to financial services and markets. The transition from cash to digital wage payments also has the potential to improve workers’ wellbeing and economic opportunities, providing them with greater control over their wages and enhancing their access to formal financial services, such as savings, credit, and insurance. Read more.

Objectives

The workshop is intended to facilitate discussions on the challenges and opportunities faced by financial and payroll service providers in responsibly transitioning to digital wage payments.
Specifically, the event seeks to achieve the following objectives:
  1. Raise awareness on the benefits of responsible digital wage payments for promoting SMEs’ efficiency and access to finance and workers’ financial inclusion and discuss the role of financial and payroll service providers in the transition.
  2. Enhance the understanding of existing practices in Indonesia through the presentation of case studies of products and services currently offered by financial and payroll service providers for SMEs and workers.
  3. Discuss the barriers and solutions to scaling up the transition to digital wage payments, notably on servicing smaller enterprises and workers in more vulnerable groups – rural and/or remote areas, informal sector, women, migrants etc.
  4. Discuss strategies for financial and payroll services providers to develop digital wage payment solutions centred on the needs of SMEs and their workers, responsibly supporting their access to additional services and products (credit, savings, insurance).

Tentative agenda

Session's description (in Bahasa Indonesia)

Target audience

The event targets around 65 participants from Financial Service Providers and other related stakeholders.
Financial Service providers:
Participants representative from Financial Service Providers, including:
  • Regional Development Banks
  • Commercial Banks (Incld. State-owned banks)
  • Digital Banks
  • Rural Banks
  • Fintech (IKD and Lending)
  • Bank Associations (ASBANDA, Perbarindo, Asbisindo)
Other stakeholders:
  • Employers’ organizations (APINDO, Chamber of Commerce)
  • Trade Unions
  • Payroll Service Providers
  • Government bodies (Ministry of Manpower, Coordinating Ministry of Economic Affairs, Bank Indonesia)
  • Sector Associations (Payment System Association, Fintech Association)
  • BTCA (Better Than Cash Alliance)
  • Mastercard Foundation
  • Women’s World Banking
  • LPEM University of Indonesia