Indonesia moving towards greater financial inclusion

The government seeks to give 75% of adults access to financial services by 2019, up from just 36% in 2014

Indonesia moving towards greater financial inclusion

Insurance News

By Gabriel Olano

The Indonesian government is exerting all efforts to tackle the problem of millions of Indonesian citizens having no access to insurance, banking, and loans services, according to an executive of the Bill and Melinda Gates Foundation.
President Joko “Jokowi” Widodo’s administration wants to provide 75% of Indonesian adults access to financial services by 2019, up from just 36% in 2014.
The government is implementing a national strategy to increase financial inclusion through education, public financing facilities, beneficial regulations, and consumer protection programs, in cooperation with Bank Indonesia (BI) and the Financial Services Authority (OJK).

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“There is a renewed political will, therefore, we are here to bring back all the information to the table so that we can reassess our strategy,” Elisa Sitbon, Gates Foundation program officer for the Financial Services for the Poor, told the Jakarta Globe.
For the past five years, the Bill and Melinda Gates Foundation has been working with BI, OJK and other partners in Indonesia, such as financial service consultancy MicroSave, to find ways to bring financial services to poor individuals. The foundation has also given US$6.5 million in funding grants for various research and seminars.
Sitbon added that the foundation is currently developing a new financial inclusion program that is fine-tuned to the Indonesian situation. An increase in funding is also likely.

“We don’t have a strict timeline, but I imagine we will have a decision within a month or so,” she said.

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