HAS FINTECH INFLUENCED INDONESIA’S EXCHANGE RATE AND INFLATION?

Seema Wati Narayan and Sahminan Sahminan
Additional contact information
Seema Wati Narayan: RMIT University

Bulletin of Monetary Economics and Banking, 2018, vol. 21, issue 2, 177-190

Abstract: The digital financial services industry, or financial technology (FinTech), has emerged in Indonesia in recent years. The FinTech industry, although disruptive, promises among other things to reduce costs of, and improve access to, financial services. This paper investigates the macroeconomic implications of FinTech companies in Indonesia over the period 1998–2017. In particular, we investigate the impact of FinTech on the Indonesian exchange rate (rupiah vis-a-vis the US dollar) and the inflation rate. Our results suggest that FinTech is able to reduce inflation and lead to a real appreciation of the rupiah against the US dollar, although its effect on the exchange rate is delayed. We explain our results and discuss future research directions.

Keywords: FinTech; Real Exchange Rate; Inflation; Indonesia (search for similar items in EconPapers)
JEL-codes: E31 F31 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=1115&context=bmeb (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:21:y:2018:i:2:p:177-190

DOI: 10.21098/bemp.v21i2.966

Access Statistics for this article

Bulletin of Monetary Economics and Banking is currently edited by Paresh Narayan

More articles in Bulletin of Monetary Economics and Banking from Bank Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Lutzardo Tobing ( this e-mail address is bad, please contact ) and Jimmy Kathon ().