Indonesia is likely to implement blockchain to better its political and electoral processes, management and banking in the coming future.
The Indonesia public and private sectors aim to use blockchain to overcome data management challenges such as lack of expertise and resources and the need to keep accurate records. Blockchain can help the country to reduce paperwork and errors in the management of data, and most importantly cut down costs. Besides, it would facilitate proper keeping of records.
With 250 million people across 17,000 islands, Indonesia would use blockchain — the technology behind cryptocurrencies. The technology intends to bring revolution to its tax system. Already, an Online Pajak tech firm has launched a blockchain app. It allows sharing of encrypted data with institutions including the tax and treasury offices, banks and the central bank.
In this area, blockchain will facilitate keeping of records that justify entries with people that have paid their taxes. Currently, it is hard for anyone to prove that they have paid according to Online Pajak founder Charles Guinot.
Blockchain – A better technology in electoral processes
The technology can also aid in improving election process in countries that experience shaky political and electoral processes like Indonesia. Blockchain, for instance, would help with voter verification. It can also help in the direct polling gon various local policy issues. It could also eliminate grant in public programs in the country. For instance, given that subsidies are allocated in state budget based on previous year’s harvest. But production statements are difficult to verify due to large numbers of small farmers. Hence estimates might be overstated or understated.
Blockchain can help identify people in need of benefit according to Finance Minister Sri Mulyani Indrawat. He told Reuters that her staff is looking at ways of implementing blockchain in areas such as subsidy disbursement and micro-loan programs.
Horizon State, an Australian firm, will also launch a phone app on Sumatra island in July. The app enables polling on various policy issues. The app, which uses blockchain verification, could help eliminate fraud in the electoral process in various countries. These types of apps can help countries like Indonesia where there are large populations dispersed across different remote Islands with poor access.
Blockchain Technology on Banks
Additionally, more banks in the country think blockchain will significantly impact markets — 80 percent of executives at ﬁnancial institutions think so according to a survey published last year by Bain & Company.
One of the banks, the second largest in the country by assets, Bank Mandiri, is looking at using blockchain for trade finance. However, they are waiting or regulatory guidelines. The Financial Services Authority is studying how blockchain will help the industry.
For other countries such as Estonia, blockchain is helping in the management of national identities since 2012. And it is helping in a number of fields including national health, judicial, legislation, security, and commercial code systems.
Another country looking at the possibility of using blockchain for improving the political process in Brazil. The country is looking at a solution that could allow a citizen to identify and sign a petition on an issue they think should be brought up in Congress.
The tax office’s director of transformational technology Iwan Djuniardi said these changes could take time given it takes time to process management change before adopting the new technology. He said they are also debating cloud technology also.
What is your take on using blockchain for enhancing political processes?