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Rise of blockchain in Indonesia and the men who made it happen

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In the last couple of years, blockchain technology has been thrust into the global limelight, which it is worthy of. Around the world, from small startups to big MNCs, many have embraced and integrated this technology in various capacities, in their businesses.

In the Asian sub-continent, Indonesia was quick to emerge as a forerunner in the race for blockchain adoption. In fact, Bank Indonesia (BI) was one of the first institutions in the country to announce the launch of its own digital currency, backed by blockchain technology.

Since then, the country has come a long way and displayed great vigour in the acceptance of blockchain. An Indonesia Blockchain Association was established back in 2018 and it has been a key player in the formation of a strong, local blockchain community.

Pioneers in Indonesia

A lot of the credit for the contemporary burgeoning blockchain community in the country goes to startups such as Blockchain Zoo, the first company to offer blockchain consultancy services in the country and Blockchain Space Asia, both of which are founders of the blockchain association in Indonesia

The year 2019 has seen the rise of some phenomenal new startups in the Indonesian market, all of which have been experimenting with blockchain technology. The year has also seen the establishment of several new cryptocurrency exchange platforms such as KoinX and DCX, all of which are backed by blockchain technology.

Constantin Papadimitriou, president of Pundi X had said in an earlier interview: There are many small and medium businesses in Indonesia not able to deploy digital payment mechanisms, as credit card organisations have created walled gardens with a high price of entry”. 

Also Read: Rise of blockchain in Indonesia brings the promise of greater financial inclusion

Blockchain has in practice been able to break down this archaic system and facilitate an alternative credit rating and payment system for small businesses.

A notable startup in Indonesia that has been dedicatedly working in this particular aspect and that is Tokoin. Co-founders Reiner Rahardja and Eddy Christian Ng combined their individual expertise in business expansion and management and risk assessment and credit profiling skills, respectively, to create Tokoin.

The platform aims to help MSMEs create their business profile and oversee their identity management, which could be used for credit scoring towards financial inclusion. 

The growth of MSMEs and the government’s pro-blockchain stance has benefited the country’s local economic boom. As more and more local businesses warm up to the potential advantages of using blockchain, one can notice the definitive digitisation of these businesses, which is profitable for them in the long run.

Also Read: Why should universities teach blockchain to students?

Reiner Rahardja, CEO of Tokoin said, I started by establishing a small business by selling cireng (a local fried snack in Indonesia) that I gradually popularised. Over the next nine months, I was able to open up around 40 branches, a bento styled restaurant with four branches and eventually took to selling imported wood parquets.” 

There are many such success stories all across Indonesia, of those who started small but made it big, and along the way realised the importance of new innovations in technology. Here’s wishing that this boom in the business of MSMEs continues to break down barriers and grow beyond the possible. 

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Image credit: Fikri Rasyid on Unsplash

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