THE TRADE-OFF BETWEEN FINTECH CONSUMER DATA SECURITY AND THE  EFFECTIVENESS OF BI'S MONETARY POLICY TRANSMISSION: EVIDENCE FROM INDONESIA 2021–2025

Slamet Rahmat Topo Susilo; Ardy Firman Syah

Slamet Rahmat Topo Susilo 1Research Center for Social Welfare, Village, and Connectivity National Research and Innovation Agencies
Ardy Firman Syah Research Center for Domestic Government National Research and Innovation Agencies

Keywords: Digitalization of Payments; Fintech Consumer Data Security; Monetary Policy Transmission

Abstract

This study aims to examine how fintech consumer data security operates as a moderating mechanism within Indonesia’s monetary policy transmission framework during the 2021–2025 period. Utilizing a qualitative descriptive design grounded in technical-institutional analytics , the paper analyzes regulatory documents, policy frameworks, and secondary macro-financial indicators via thematic coding and process tracing. The findings reveal a distinct trade-off: while tightened data security mandates introduce short-run dampening effects on fintech credit elasticity by increasing compliance and onboarding frictions, they simultaneously strengthen medium-run monetary transmission reliability by securing digital payment channels, stabilizing core financial infrastructures, and preserving consumer trust. The novelty of this research lies in its conceptualization of data governance as an endogenous institutional moderator rather than an exogenous background variable, directly bridging the theoretical gap between macro-monetary economics and digital financial security. However, a key limitation is the exclusive reliance on qualitative institutional analysis and secondary aggregate data, which prevents strict econometric causal identification. Consequently, future research recommendations include applying quantitative or mixed-method approaches to formally estimate these elasticities and utilizing micro-level behavioral data to test the role of consumer trust directly.