Gov’t Pushes for Expansion of Formal Financial Services

President Jokowi chairs a limited meeting on National Financial Inclusion Strategies, at the Presidential Office, Jakarta, Tuesday (28/1). (Photo by: Public Relations/Rahmat)

President Joko “Jokowi” Widodo has urged his Cabinet Minister to prioritize expansion of formal financial services and provide ease of access to formal financial services at all levels of society.

“Likewise, I ask for microfinance institutions, micro waqf banks to continue the expansion in order to reach all levels of society that are not reached yet by banking services,” President Jokowi said at a limited meeting on National Financial Inclusion Strategies at Presidential Office, Jakarta, Tuesday (28/1).

Indonesia’s Financial Literacy Index has risen from 29.7% in 2016 to 38.03% in 2019. However, according to the President, the figure is still low.

“By the same token, the financial inclusion index also increased from 67.8% in 2016 to 76.19% in 2019,” President Jokowi said.

Indonesia’s financial inclusion index, the President stated, is still lower compared to that of other ASEAN countries such as Singapore (98%), Malaysia (85%), and Thailand (82%).

The President also instructed his ministries to further develop internet-based digital financial services. “This should be supported by the relatively high penetration rate of internet users, which is 64.8% or approximately 170 million people from the total population,” President Jokowi said.

In addition, the President also stated that financial technology is feasible as an alternative for quick and easy financing. “Outstanding credit loans for fintech reached Rp12.18 trillion, a 141% increase in November 2019,” he said. (FID/EN)

Translated by: Fairuzzamani Inayatillah
Reviewed by: M. Ersan Pamungkas