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households inter-temporal consumption decisions. Further, financial inclusion is closely related to fintech. On the one hand, fintech helps overcome the financial inclusion problem because fintech manages to reach those who were previously inaccessible by banks. On the other hand, fintech will change the payment system structure in an economy that will eventually affect the effectiveness of monetary policy. Using the Vector Error Correction Model (VECM) with the observation period of 2009.Q1-2018.Q1, this study aims to analyze the effects of financial inclusion and fintech on inflation as a proxy for the effectiveness of monetary policy in Indonesia within the framework of the transmission mechanism of interest-based monetary policy through both the cost of capital effect and the substitution effect. The results demonstrate that the level of financial inclusion and fintech proved to influence the effectiveness of monetary policy in Indonesia. However, the effect of shocks in financial inclusion on inflation is not permanent. However, shocks in fintech affect the volatility of inflation rate is permanent both through the substitution effect and the cost of capital effect.