President Jokowi Chairs Inclusive Financial National Council

In an attempt to widen the people’s access to financial services, the Government considers it necessary to formulate a national strategy of inclusive finance that will serve as the guideline for strategic steps for ministries/institutions to boost economic growth, to accelerate measures to alleviate poverty, to narrow down gap among people and among regions in order to bring prosperity for the Indonesian people.

Based on those considerations, President Joko ‘Jokowi’ Widodo on 1 September 2016 signed a presidential regulation number 82 of 2016 on the national strategy of inclusive finance (SNKI).

“The SNKI is a national strategy materialized in documents that contain visions, missions, goals and inclusive financial policies in an effort to boost growth, accelerate efforts to alleviate poverty, widen gaps among people and regions, in order to bring prosperity for the Indonesian people,” said Article 1 paragraph (2) of the presidential regulation.

SNKI consist of:

1. preface;
2. financial services in Indonesia;
3. inclusive financial policies; and
4. closing that contains appendixes, which is an inseparable part of the presidential regulation.

The SNKI according to this presidential regulation has the following functions:

1. A guideline p for ministers and heads of institutions in formulating sectoral policies related with the SNKI and materializedin the documents of strategic plans in their own respective fields as part of the National Mid-Term Development Plan (RPJMN); and
2. A guideline for governors and regents/mayors in formulating regional policiesrelated with SNKI at the provincial and regency/municipality level.

The presidential regulation also states that in the implementation of the SNKI, the Government established the Inclusive Financial National Council, which is in charge of:

1. Coordinating and synchronizing the implementation of the SNKI;
2. Directing steps and policies to resolve problems and barriers in the implementation of SNKI; and
3. Monitoring and evaluating the implementation of the SNKI.

Membership of the Council is:

Chairman                            : President of the Republic of Indonesia

Deputy Chairman                  : Vice President of the Republic of Indonesia

Executive Chairman                    : Coordinating Minister for the Economy

1^st Deputy Executive Chairman  : Governor of Bank Indonesia

2^nd Deputy Executive Chairman : Chairman of the Commissioner Council of the Financial Service Authority (OJK)

Members                         :

1. Coordinating Minister for Human Development and Culture
2. Coordinating Minister for Political, Legal, and Security Affairs;
3. Coordinating Minister for Maritime Affairs;
4. Minister of State Secretary;
5. Minister of Finance;
6. Minister of National Development Planning/Head of the National Development Planning Board (Bappenas);
7. Minister of Home Affairs;
8. Minister of Agrarian and Spatial Planning;
9. Minister of Communication and Informatics;
10. Minister of Cooperativesand Small and Medium Enterprises;
11. Minister of Social Affairs;
12. Minister of Law and Human Right; and
13. Cabinet Secretary.

“The position of Governor and Head of the Commissioner Council f of the Financial Services Authority (OJK) does not diminishthe authority and independence of the implementation of their respective tasks and functions based on the provisions of the law,” Article 3 paragraph (4) of the presidential regulations says.

The National Council of the Inclusive Finance is assisted by 8 (eight) working groups and a secretariat which are functionally done by one of the working units within the Coordinating Ministry for the Economy.

“Tasks and membership of the working groups and the secretariat as shall be determined by Coordinating Minister as the Executive Chairman of the Council,” says Article 4 paragraph (4) of the presidential regulation..

In addition, in performing its tasks, the National Council may also involve other ministries, institutions, regional governments, enterprises and other parties in accordance with what are needed.

The presidential regulations also states that all expenses needed in the implementation of the tasks of the National Council, working groups and the secretariat shall be taken from:

1. budget of the Coordinating Ministry for the Economy;
2. legitimate funding in accordance with the laws and regulation.

“This presidential regulation shall be in effect on the date it is promulgated,” said Article 9 of the Presidential Regulation, which was promulgated by Minister of Law and Human Rights Yasonna H. Laolyon 7 September 2016. (Pusdatin/ES)(EP/YM/Naster)