Expand Financial Inclusion, Bank Indonesia Launches Guidelines For All Agencies

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JAKARTA - Bank Indonesia (BI) is said to continue to make efforts to expand financial inclusion in the country.

Most recently, the monetary authority launched an Inclusive Economic and Financial Development guidebook based on the Subsistent Group.

BI Deputy Governor Juda Agung said this initiative is expected to serve as a guideline in the development of subsistent groups for all parties, both local governments, ministries/agencies, and Bank Indonesia itself.

"We encourage subsistent groups to become business actors that develop from both inclusive finance, business development, and institutions," he said in an official statement, quoted on Saturday, May 20.

According to Juda, the central bank is targeting to strengthen the national economy through efforts to strengthen household consumption, which includes subsistent groups.

"The improvement steps taken by Bank Indonesia are by expanding inclusiveness through capacity support, market and financial access, so that resistant groups can manage their finances and make attractive quality and branding products," he said.

Juda explained, in implementing the development of subsistent groups, his party took a policy approach that integrates financial inclusion with community economic empowerment through the framework of the National Economic and Financial Inclusive Strategy (SNEKI) to support the achievement of the National Financial Inclusive Strategy (SNKI).

It is stated that BI in 2021 has developed an inclusive economic and financial development business model based on subsistent groups.

Juda explained that the program targeting subsistent groups was recipients of social assistance, and had business startups.

"We then direct this to form a prospective micro business and encourage the use of formal financial products and services to support productive economic activities so as to achieve economic independence and advance to class," he said.