Centralized Credit In Java Island, Jokowi Asked TPAKD To Increase Financial Inclusion In Passive Regions

President Joko Widodo (Screenshot of the OJK event)

JAKARTA - President Joko Widodo (Jokowi) highlighted commercial bank lending which is still centralized in Java Island. Therefore, he asked the entire regional financial access acceleration team (TPAKD) to increase financial inclusion in various regions.

"Increase financial inclusion in areas that are still passive, especially for small people and MSMEs. The data I received as of September 2020, 73.7 percent of commercial bank loans are on the island of Java," he said, in a virtual TPAKD 2020 National Coordination Meeting, Thursday. , 10 December.

In addition, Jokowi said, in the Southeast Asia region, Indonesia's financial inclusion index was only 76 percent or lower than other ASEAN countries.

"Therefore, the KUR program, ultra-micro credit, micro waqf banks and others must continue to increase their absorption, their productivity must be increased to increase our MSME class," he explained.

Furthermore, Jokowi also asked the TPAKD, which are currently located in 32 provinces and 165 districts / cities, to help intensify access to finance for MSME players in order to encourage development and economic growth in the regions.

"Increasing access to finance is important. It is important to encourage development and economic growth in the regions, promote social justice, promote welfare and the standard of living of the people at large through financial inclusion," he said.

According to Jokowi, increasing financial inclusion cannot be pursued in the usual ways. He said, it must be with a more aggressive financial literacy campaign in order to increase public knowledge about access to finance, and increase the number of people who are active in saving at financial institutions.

"New methods of socialization and education must be carried out in various ways. Innovative ways include art and culture that are in accordance with the current character, which are in accordance with the target group, and involve educational institutions, religious institutions including collaboration with leaders which is influential, "he said.

The TPAKD, said Jokowi, must also be more active in encouraging the establishment of various business groups, such as farmer groups and cooperatives. This effort can also be accompanied by instilling a corporate working model in cooperatives.