Gov't Urges Financial Inclusion through Formal Finance Services

Friday, 16-July-2021 19:10

illustration: Indonesia's currency, the Rupiah
Image : ANTARA FOTO/Sigid Kurniawan/kye
illustration: Indonesia's currency, the Rupiah

JAKARTA, NETRALNEWS.COM - The Indonesian government encourages financial inclusion through a pilot project to accelerate financial inclusion conducted by the Secretariat of the National Council for Financial Inclusion (DNKI) and World Bank.

"Wider replication of the pilot project to accelerate financial inclusion is expected to support the achievement of the financial inclusion target of 90 percent by 2024," said Erdiriyo, Assistant Deputy for Inclusive Finance and Sharia Finance at the Indonesian Coordinating Ministry for the Economy, in a statement received in Jakarta, on Friday (07/16/2021).

Erdiriyo hopes that the dissemination of the results of this pilot project will open up opportunities for replication activities in other areas.

"The collaboration between stakeholders to discuss efforts to encourage financial inclusion is important, and this can be done through various pilot intervention models like this," said Erdiriyo.

The pilot project, which was also supported by the Swiss Government through the State Secretariat for Economic Affairs (SECO) during November 2019 to September 2020, was carried out in two locations.

The locations are Tanjung Batu Village, Berau Regency, which targets fishermen's households, and Pegagan Kidul Village, Cirebon Regency, which targets migrant workers' households and full-time migrant workers.

The pilot project implementation is in synergy with the Regional Financial Access Acceleration Team (TPAKD) of West Java Province, TPAKD of East Kalimantan Province, the Financial Services Authority (OJK), Bank Indonesia (BI), and financial services industry partners.

Several financial services industry partners who participated in this project include banking and non-bank institutions, among them BPD West Java and Banten (BJB), BPD Kaltimtara, BPR Astanajapura, BRI, BNI, Mandiri, BTPN, PNM Mekaar, Pegadaian, BPJS Kesehatan, Jasindo, and BRILife, as well as electronic money publishers LinkAja and Dana. They participated in outreach activities, product matching, and the creation of a digital ecosystem in the villages.

Financial inclusion in Indonesia continues to grow, as reflected in the increase in account ownership in 2020 compared to the previous two years. Account ownership increased from 55.7 percent in 2018 to 61.7 percent in 2020. Meanwhile, account usage increased from 76.19 percent to 81.4 percent, as reported by Antara.

Reporter : turkhan
Editor : turkhan