Jokowi Calls for Extraordinary Approaches to Boost Financial Inclusion

TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo stated that improving public access to financial services is necessary to boost development and economic growth in regions, promote social justice, as well as push for people’s welfare and living standards.

“I ask all to take extraordinary measures in increasing the financial inclusion,” said the President in the opening of a virtual coordination meeting with the regional financial access acceleration team (TPAKD) on Thursday, Dec. 10.

He outlined the four extraordinary approaches. First, be more aggressive, create more innovation, improve public knowledge, and develop interest and trust in the financial industry. Secondly, the TPAKD should be more active in encouraging the establishment of business groups such as farmer communities and community cooperatives.

The state head further asked for the strengthening of infrastructure, such as the establishment of regional credit insurance or Jamkrida, microfinance institutions, and bank agents in each village, as well as the acceleration of regional bonds issuance.

According to Jokowi, the fourth way to increase financial inclusion in passive regions, particularly for people with low income and MSMEs is to develop micro-credit programs (KUR), ultra micro-credit programs, micro waqf banks, and so on.

The Financial Services Authority (OJK) along with related ministries or institutions, regional governments, and financial services institutions declared its commitment to making various efforts and innovations to improve public financial access in the regions as ordered by the President.

Jokowi also expressed his appreciation for the hard work of TPAKD which links agencies and stakeholders in improving financial access in the regions.

Read: $500 Mn ADB Loan to Expand Financial Inclusion in Indonesia

HENDARTYO HANGGI