The Importance Of Digital Financial Literacy For Informal Economic Transition To Formal In Jakarta

JAKARTA - Acting President Director of Bank DKI Amirul Wicaksono talked about the role of the financial sector in encouraging the payment of digital wages for MSMEs.

As a regional development bank (BPD) owned by the DKI Jakarta Provincial Government, Amirul emphasized the importance of digital financial literacy and inclusion for business actors.

"Digital financial literacy and inclusion for MSMEs including workers in this sector are important points to support the transition from digital wage payments and the transition from informal economy to formal economy," Amirul said at a workshop forum in Jakarta, Thursday, December 7.

Amirul explained that the concept of financial literacy and inclusion is the main pillar in supporting the digital financial transition.

"Bank DKI also highlighted ongoing efforts in developing digital solutions that are in accordance with the needs and developments of the times for MSME actors," he explained.

Meanwhile, Bank DKI Corporate Secretary, Arie Rinaldi said digital transformation is an important step in responding to customer needs and supporting economic and social development in the regions.

"Bank DKI is committed to continuing to support efforts to create an inclusive financial environment, expand access to financial products and services, and make a positive contribution to economic growth and community welfare," said Arie.

Arie explained that the implementation of digital transformation includes business transformation, good governance, reliable digital innovation, and strong risk management.

According to him, digital transformation programs are the key and strategy to achieving banking success in a sustainable manner.

"The digital transformation initiative carried out by Bank DKI, in addition to aiming to expand financial access for the community and increase added value on products and services, is also aimed at strengthening partnerships with the DKI Jakarta Provincial Government as a shareholder," he explained.

On the one hand, Bank DKI recorded growth in lending during the third quarter of 2023. As of September 2023, Bank DKI's lending grew by 6.90 percent to Rp49.96 trillion, from the previous Rp46.73 trillion in September 2022.

Romy said credit growth was mainly driven by the retail segment which grew by 68.66 percent to Rp1.66 trillion in September 2023, from the position of Rp986.30 billion in September 2022.

"Credit and financing growth is in line with a consistent business strategy in the potential segment, with the main focus of increasing portfolios in the MSME segment in line with the company's vision and mission," he explained.

Furthermore, micro credit also showed good performance with a growth of 42.86 percent to Rp3.27 trillion in September 2023, from the position of Rp2.29 trillion in September 2022.

The growth of the micro and retail segments has pushed the increase in the credit ratio of Bank DKI MSMEs as of September 2023 to 9.87 percent from previously recorded at 7.00 percent in September 2022.