Jokowi Points Out Indonesia's Low Literacy, Financial Inclusion

TEMPO.CO, Jakarta - President Joko Widodo, also known as Jokowi, held a limited meeting with a number of ministers to discuss national financial inclusion strategies. The president highlighted the Indonesian financial literacy and inclusion index figures which were still low compared to other ASEAN countries.

“We know that financial literacy has increased from 29.7 percent in 2016 to 38.03 percent in 2019. It has indeed increased, but the figure is still low,” he said at the State Palace Complex, Jakarta, on Tuesday, January 28, 2020. 

Similarly, although the financial inclusion index increased from 67.8 percent in 2016 to 76.19 percent in 2019, the figures are still inferior when compared to neighboring countries in Southeast Asia such as Singapore, Malaysia, and Thailand.

“I want to compare financial inclusion in ASEAN alone, in Singapore, the figure is up to 98 percent, Malaysia 85 percent, Thailand 82 percent. We are still a little bit below them,” said Jokowi.

To increase the literacy and financial inclusion indices, the President has directed the Indonesian Government to prioritize the expansion and ease of access to formal financial services, at all levels of society.

“In addition, I ask that microfinance institutions continue to be expanded in order to reach all levels of society that are not accessible by banking services,” said the president.

On top of that, he also requested that internet-based digital services must be continuously developed, formal financial access expanded, as well as customer and consumer protection improved.

“So that, the people can easily, safely and comfortably access formal financial (institutions), with the result that public trust (can be achieved), as an important and absolute matter for the service and financial industries,” President Joko Widodo remarked in the meeting that was also attended by his vice Ma'ruf Amin.

DEWI NURITA | DIO SUHENDA (Intern Translator)