TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo highlighted Indonesia's financial inclusion index which is still lagging behind several ASEAN countries. At present, the index stands still at 76 percent.

“We still have a lot of homework to do,” said the President in a virtual event of Indonesia Fintech Summit on Wednesday, November 11, 2020.

He compared Indonesia’s index with several neighboring countries, namely Singapore with a financial inclusion index of 98 percent, Malaysia 85 percent, and Thailand 82 percent. “I say it again that we are still at 76 percent,” Widddo added.

Other than the financial inclusion rate, the President mentioned that the digital financial literacy of the Indonesian people was still low at 35.5 percent. Only 31.26 percent of people used digital services. “There are still many of them who are using informal services,” he said.

On the other hand, he confirmed that financial technology services were developing rapidly. The fintech contribution to the national loan distribution in 2020 reached Rp128.7 trillion, skyrocketing by 113 percent year on year. As of September, there are 89 registered fintech firms in Indonesia.

Thus, Jokowi hoped fintech would not just channel loans and online payment but also become the main driver of digital financial literacy up to financial planning assistants. “As well as help to expand MSMEs in accessing the e-commerce market,” he said.

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