OJK Encourages Young Generation to Understand Asset Tokenization

The Financial Services Authority (OJK) encourages the younger generation to understand the opportunities and risks of tokenizing real-world assets (RWA) amid the development of digital finance and cryptocurrency. The Executive Head of the Financial Sector Technology Innovation Supervisory, Digital Financial Assets, and Cryptocurrency (IAKD) OJK, Adi Budiarso, emphasized the importance of understanding legality, security, and consumer protection so that the public can wisely utilize this innovation. Adi stated that the regulatory framework must adapt to technological developments, accompanied by an increase in human resource capacity in the industry and regulators. He explained that technologies such as artificial intelligence, big data, cloud computing, and distributed ledger technology (DLT) open up opportunities for the development of financial services. One of the highlighted innovations is the tokenization of RWA, which is a digital representation of real assets. This technology can enhance transaction efficiency, expand investments, and open alternative financing options. Several tokenization models have followed the OJK sandbox mechanism, including gold tokenization and government bonds. Adi also reminded the younger generation not to be lured by the high profits from investing in digital financial assets, and it is important to ensure the legality of the organizers and understand the characteristics of the products before investing. He emphasized two main aspects of investing: legal and logical, as well as the importance of conducting independent research and understanding risks.

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