OJK Agrees On Collaboration On Global Financial Education Initiative With OECD

JAKARTA - The Financial Services Authority (OJK) and the Organization for Economic Co-operation and Development / International Network on Financial Education (OECD / INFE) have agreed to increase partnerships and collaborations in advancing financial education initiatives globally and supporting the commitment of the G20 / OECD High-Level Principles on Financial Consumer Protection.

Deputy Chairman of the OJK Board of Commissioners Mirza Adityaswara said that consumer empowerment through financial literacy is crucial at the global level, especially in the digital era with the increasing complexity of financial products and services.

We realize the important role of financial literacy in the global economy, especially in the fast changing digital era. The theme of this conference, 'Empowering Consumers Through Financial Education' is very timely and relevant," he explained in his statement, Sunday, November 10.

Mirza said that with the increasingly complex financial products, it is important for us to equip consumers with the right knowledge, skills, and tools to make financial decisions.

On the same occasion, OECD Deputy Secretary-General Yoshiki Takeuchi said that through a good understanding of sustainable finance, the public can make wise and responsible financial decisions so as to avoid excessive debt problems and strengthen financial resilience which ultimately contributes to the sustainability of the natural environment and the future economy.

Meanwhile, Chief Executive of the Behavior Supervisory of Financial Services Business Actors, Education and Consumer Protection OJK Friderica Widyasari Dewi hopes that the synergy and collaboration between OJK and OECD/INFE will be closer to realizing a more empowered and inclusive society and consumers so as to create financial resilience in facing various economic challenges.

OJK has benefited from joining OECD/INFE. Through this forum, OECD/INFE members can share information, experiences and challenges faced in an effort to increase consumer literacy and protection. So that new programs and policies can be formulated according to needs," said Friderica.

Friderica said that OJK has never stopped carrying out various financial educational activities to further increase literacy and can further protect consumers.

From January 1 to October 28, 2024, OJK has held 4,393 financial education activities that reach 5,795,083 participants throughout Indonesia.

Meanwhile, Chair of the OECD/INFE Magda Bianco conveyed OECD/INFE's commitment to continue building and developing the best strategy in order to increase consumer literacy and protection in the financial services sector.

Magda added that the increase in financial literacy was carried out by developing accommodating policies and paying attention to the conditions and needs of the community.

"Financial literacy plays a role in increasing the participation and level of public trust in being more involved in the financial services sector and making financial decisions well," he explained.

In addition, Magda said financial literacy also makes the public more financially prepared in dealing with possible uncertainties in the future. The public will also be able to choose products/services according to their investment strategies and objectives.

The OECD/INFE'OJK Meeting and Conference series has been held since November 6, 2024. The series of meetings began with the Advisory Board Meeting on November 6, 2024, attended by all members of the OECD/INFE Advisory Board.

Then, the implementation of the Technical Committee Meeting on November 7, 2024, which discussed Financial Well-being financial literacy in a sustainable financial framework, the importance of financial literacy through the school curriculum, financial literacy and digital payment.

In the session 1 discussion discussed how financial education can be a tool to empower consumers, especially the vulnerable segment, what challenges are faced by the vulnerable segment and the emergence of various data security risks as a digitalization impact that causes digital financial inclusion, especially for the vulnerable segment.

Discussions in session 2 relate to the risk of climate change to society globally and various policy initiatives in order to support sustainable finance. In session 3 discussed collaborative efforts to empower consumers in the context of dealing with over-independence.

Friderica expressed her appreciation to all parties, especially to OECD/INFE for her support and commitment so far in increasing financial literacy.