Sri Mulyani Affirms Effective Financial Literacy To Prevent Potential Asset Crimes

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani emphasized that financial literacy is very important to prevent crime in this sector. According to him, this can be a bulwark of understanding for the public so as not to be trapped in misleading investment practices.

According to the Minister of Finance's records, the Indonesian people's financial inclusion index has only reached 76.19 percent. This amount is said to be far from safe, so more efforts are needed to be able to ward off potential financial crimes.

“We have a financial inclusion index of 76.19 percent and this still needs to be improved. Because, if the Indonesian people have a good financial understanding, they can determine and maintain the welfare of their assets," he said online as a keynote speaker at the opening of the Leading Indonesian Financial Literacy (Like It), Tuesday, August 3.

The Minister of Finance added that through the ability to understand correctly, the public can carefully determine what investment instruments and financial products to choose. This will also allow everyone to think more clearly and not only rely on certain aspects of returns.

“They will not be easily lured by instruments that look very attractive but are actually very dangerous and then lose all the money. This is what often happens, people are given promises in the form of a rate of return or in other forms, but it turns out the money is gone, and that is a crime," he said.

In the future, the government together with the Financial Services Authority (OJK) and industry players will continue to take strategic steps to realize the expansion of literacy in the community.

"Of course we and authorities such as the OJK and business actors will take strategic steps. The government hopes that the increase in the financial inclusion index can reach 90 percent by 2024," he said.

Meanwhile, one concrete form in realizing this is by rolling out the People's Business Credit (KUR) program. This intermediation scheme is believed to have a significant effect on the community, especially the grassroots, who are in contact with official financial institutions such as banks for the first time.

This strategy is also a form of state presence in keeping people from being trapped in harmful financial instruments.

“So the government supports KUR, which is credit given to the wider community, especially groups that really need it, namely super micro, micro, and micro medium businesses. Through this program, the government also provides interest subsidy assistance to ensure that business activities carried out by the community can continue," concluded Minister of Finance Sri Mulyani.