TEMPO.CO, Jakarta-The Financial Services Authority (OJK) is committed to increase the public's access to financial services products in a bid to crunch economic gap. Some efforts include the implementation of the branchless banking system and by applying tax rules for people to obtain loans.
"We need to pay attention to the people's ease of access in doing business," OJK director for non-bank supervision Firdaus Djaelani said yesterday as quoted by Antara.
Speaking at a discussion dubbed 'Fairness in Resources Management for Economic Equality' held in Jakarta Monday, May 9, Firdaus said that Indonesia's financing source is still dominated by banks, whose assets account for 75% of the national financial industry. Meanwhile, people from the lower class have limited access to banks.
The Central Statistics Agency (BPS) noted that the level of income gap among Indonesians remain high. Per September September 2015, the Gini ratio for spending stood at 0.4. The government is targeting the Gini ratio can be reduced to 0.39 this year.
Meanwhile, the OJK is targeting to have 1 million agents of branchless banks by the end of this year, with their distribution range to reach people living in areas with minimum access to financial services.
The regulator will also loosen the rules for people from the lower class to obtain loans by relaxing the collateral requirements applied to banks.
In January 1 this year, the government has lowered the credit interest rates for the people's business credit (KUR) program to 9.0 percent. "Low KUR interest can stimulate the people's businesses and consumption," Firdaus said optimistically.
The government has allocated Rp120 trillion of funds for the KUR program this year, of which Rp93 trillion was distributed through state banks and Rp7 trillion given to local governments for them to channel to regional development banks and private banks.
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