President Jokowi Hopes Financial Services Industry Will Boost Indonesia’s Economy Next Year

President Jokowi delivers remarks during the 2024 Financial Services Industry Annual Meeting at the St. Regis’ Ballroom in Jakarta, Tuesday (02/20) (PR of Cabinet Secretariat/Rahmat)

President Joko “Jokowi” Widodo Tuesday (02/20) called on players in the financial service industry to continue maintaining the financial services industry, while also maintaining Indonesia’s economy to be inclusive and sustainable amid inconducive geopolitical situations.

“The Financial Services Authority (OJK) must continue strengthening financial inclusion and literacy. I have a report that our financial inclusion rate is at 75 percent and our financial literacy rate is still at 65 percent in 2023,” he said at the 2024 Annual Meeting of the Financial Services Industry at St. Regis’ Ballroom in Jakarta.

The President expressed hope that the stable political situation after the 2024 general elections could further increase and improve investment flows in the country.

“The most important thing is the political situation of our country. The situation remains steady. It will reassure financial industry players and boost the robust financial industry so that it will support inclusive and sustainable economic growth,” he added.

On that occasion, President Jokowi also encouraged the financial services industry to assist in MSMEs’ growth through enhanced access to capital.

“One equally important thing is our support for MSMEs through banking and insurance. Banking credit for MSMEs is currently at 19 percent. It requires more initiative. It requires a strategy for an increase in banking credit to MSMEs so that we can see MSMEs grow well,” the President said.

President Jokowi also expressed gratitude for the resilience of the financial industry in banking capital reaching 27.69 percent, higher than several countries in the region, while appreciating the maintained national economic growth at around 5.05 percent, managed inflation at 2.57 percent, foreign exchange reserves at USD145 billion, a trade surplus at around Rp570 trillion, and a surplus current account deficit at 0.16 percent.

“I believe that the figures must make us upbeat about Indonesia’s economy in 2024, but we still have to be cautious, to be vigilant considering the rapidly changing global economy and massive technological disruptions,” he added.

President Jokowi also expressed appreciation for the launch of the Taxonomy for Sustainable Finance by the OJK, while expressing hope that the Sustainable Finance Taxonomy will bring positive impacts on Indonesia’s economy in the future.

“I would like to extend my appreciation for the improvement of the Indonesian Sustainable Finance Taxonomy launched earlier by Chairperson of the OJK so that green finance initiatives will maintain a balance among economic aspects, environmental aspects, and inclusivity. Thank you for your dedication and hard work in advancing the financial sector in Indonesia. Let us together face challenges and achieve better economic growth,” he remarked. (TGH/UN) (AP/EP)