Financial Innovation for Sustainable Development Analyzing DeFi Adoption among Indonesian Investors
Description
This study aims to examines the key factors driving Indonesian investors toward Decentralized Finance (DeFi) adoption, even with the resilient security offered by conventional banking systems. This emerging financial paradigm presents a potential solution to persistent challenges in financial inclusion, directly aligning with the 2030 Agenda for Sustainable Development. It seeks to find the drivers behind this shift and evaluate its effects on investor behavior and financial inclusion across Indonesia. The study incorporates the Unified Theory of Acceptance and Use of Technology (UTAUT) and Financial Disruptive Innovation Theory to create a solid foundation for exploring DeFi adoption. Using a quantitative, explanatory method, data were gathered through an online survey targeting Indonesian investors familiar with DeFi. From this, 76 valid responses were assessed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0.9.9. Results indicate that Effort Expectancy, Financial Disruption Perception, and the Intention to Adopt DeFi strongly predict adoption rates. On the other hand, elements including Performance Expectancy, Social Influence, and Facilitating Conditions showed notable impact. These insights highlight the need for intuitive DeFi platforms and greater investor understanding of its transformative power. The research enhances the academic field by linking technology acceptance with financial innovation, aligned to Indonesia’s growing digital economy and its pursuit of the SDGs. It concludes with actionable suggestions for policymakers, FinTech creators, and financial institutions to support the sustainable growth of DeFi through better platform UI/UX, educational efforts, and well-defined regulations.
Files
Institutions
- Bina Nusantara University