The G20 Agrees To Encourage Financial Inclusion To Overcome Distribution Issues

Illustration (Photo: Doc. Antara)

JAKARTA - Indonesia's G20 Presidency through the Global Partnership for Financial Inclusion (GPFI) work team initiated an agreement on the importance of financial inclusion which could reduce inequality due to energy and food prices.

Deputy Governor of Bank Indonesia Dody Budi Waluyo as the representative of the Republic of Indonesia stated that every country must strive to encourage digitalization in order to create an inclusive and sustainable economy for each community group.

"It is very important to create collaboration between public authorities and the private sector in facilitating innovation, especially in financial areas and payments," he said, quoted from the official website on Thursday, October 6.

According to Dody, GPFI as the G20 working team encouraged the initiative of the Financial Inclusion Framework which focused on four important points.

First, the G20 High Level Principles for Digital Financial Inclusion implementation guide, which can be a reference for regulators in implementing financial inclusion policies that provide a balance between financial product innovation and risk mitigation that can occur.

Second, database regarding Digital and Innovative Products and Services for MSMEs outside of credit products for women entrepreneurs, young entrepreneurs, as well as recipients of social assistance.

"This database is the best collection of experience information and practice in the application of digital innovation in various countries which can be an important reference in an effort to increase financial inclusion," he said.

Third, the policy apparatus to encourage Digital Financial Services for MSMEs, which is a guide to assist regulators and financial policymakers in creating a conducive environment for MSMEs to access digital financial services.

"And the last one is the harmonization of MSME data which is a series of data or survey results containing information about financing and can be an indicator of financial inclusion," he added.

Furthermore, Dody revealed that GPFI specifically underlined the importance of strengthening the principles of consumer protection and MSME financing.

"This result shows the leadership of the Indonesian G20 Presidency in encouraging the initiative of member countries to support an inclusive and sustainable economy that reaches women, young people and MSMEs," he concluded.