President Jokowi: Take Extraordinary Measures to Improve Financial Inclusion

President Jokowi delivers remarks at virtual National Coordination Meeting of the 2020 Regional Financial Access Acceleration Team (TPAKD), Thursday (10/12). (Photo captured from OJKTV Youtube channel)

President Joko “Jokowi” Widodo conveyed his appreciation to the Regional Financial Access Acceleration Team (TPAKD) for their hard work in coordinating Government institutions and stakeholders in the effort to improve financial access in regions.

The President also called for an increase in the number of TPAKD which currently comprises 32 teams in provincial level and 165 teams in regency/city level so it can reach all provinces and regencies/cities in Indonesia and can accelerate financial access expansion in regions.

“Financial access must be improved to boost development and economic growth in regions, to manifest social justice, to improve welfare and livelihood of the people through financial inclusion,” he said at virtual National Coordination Meeting of the 2020 Regional Financial Access Acceleration Team (TPAKD), broadcasted at OJKTV Youtube channel on Thursday (10/12),

Therefore, the President invited all sides to take four extraordinary measures to improve access and financial inclusion.

First, intensify financial literacy, knowledge, interest, and trust in financial industry. Thus, the public will learn how to gain financial access and manage to save at financial institutions.

“Dissemination and education must be intensified in various ways, including through arts and culture which is tailored to adjust characteristics of the target. It also involves education institutions, religious institutions, and several prominent figures,” he said.

Second, the TPAKD must be proactive and involved in supporting business groups, cooperatives, and also in encouraging system of community cooperatives.

“Guidance and support must be intensified to the community through innovative way adjusted to the characteristics of the target groups,” he said.

Third, strengthen infrastructure to accelerate financial access, by establishing regional credit insurance (Jamkrida), microfinance institutions, bank agents in all villages, and accelerating regional bond issuance.

Fourth, improve financial inclusion in regions for grassroots and Micro, Small, and Medium-sized Enterprises (MSMEs).

“The disbursement of Smallholder Business Credit (KUR), Ultra Micro Financing (UMi), and Micro Waqf Bank must be increased to support our MSMEs,” he said adding that Indonesia’s Financial Inclusion Index in 2019 stood at 76 percent, lower than other ASEAN countries.

The President went on to say that the Government must take extraordinary, rapid, and innovative measures to immediately recover national economy which was impacted by COVID-19 pandemic.

In this year’s National Coordination Meeting which adopted a theme “Improving Financial Access to Accelerate National Economy,” Chairman of the Board of Commissioners of the Financial Services Authority (OJK), Wimboh Santoso, virtually presented TPAKD Award.

Here are the winners:

TPAKD at Provincial Level:

1. The best team for finance through partnership: South Sulawesi Province;
2. The best team for innovation development in financial inclusion program: Central Java Province;
3. The best team for SMEs empowerment program: Jambi Province; and
4. The best team for financial access: North Sumatra Province.

TPAKD at Regency/City Level:

1. The best team for innovation in credit/financial program against loan shark: Malang City;
2. The best team for low-interest micro financial program for SMEs: Kebumen Regency;
3. The best team for village empowerment program: Kerinci Regency; and
4. The best team for financial access: Langkat Regency.

Category for newcomers:

1. The best satellite regency/city for the financing of priority sector: Selayar Islands Regency; and
2. The best satellite regency/city for the financing of SMEs: Purbalingga Regency.

(FID/UN) (RAS/LW)