OJK: People Have Started To Educate Financial Literacy Well

Photo: Doc. Antara

JAKARTA - The Financial Services Authority (OJK) stated that the financial literacy index score was quite high and this was fairly positive because it indicated that the public was starting to be well educated in financial literacy. This was said by the Chief Executive of the Behavior Supervisory of Financial Services Business Actors and Consumer Protection of OJK Friderica Widyasari Dewi.

Katadata Insight Center (KIC) through the website released a financial literacy index entitled Literacy and Financial Inclusion (LINK). This index aims to measure the level of public understanding of various financial products and services in the country.

Based on the Link 2023 index, Indonesia has recently received a financial literacy index score of 69.7. In addition, research results also show that national financial inclusion has received an awareness score of 64.3 percent.

"If people are well educated, this can prevent the public from fraudulent schemes, but on the other hand it can also improve people's welfare," Friderica said at the launch of the financial literacy and inclusion index (LINK) which was followed by the screening of the film "Sangang Cuan" through a statement in Jakarta, quoted from Antara, Tuesday, December 12.

In this index, there are three measurement parameters, namely financial behavior, financial-related attitudes, and financial knowledge.

The Link Index was created using a quantitative survey method for 5,000 respondents aged 18-55 years. Research is conducted with a data collection site that is able to reach respondents accurately by utilizing the capability of telco data insight. While the implementation will be held on 12-16 June 2023.

Previously, in the financial literacy index issued by the Organization for Economic CO-Operation Development (OECD) 2020, Indonesia received a score of 66.5. This score puts Indonesia ranked 6th in the global scope.

Chief Executive Officer of Katadata Metta Dharmasaputra said the results of the financial literacy index reflected the increasingly dynamic development of the financial sector. The results of this index are expected to benefit the community.

"Hopefully this survey results can be useful for the people of Indonesia," said Metta.

In the same event, KIC Executive Director, Adek Media Roza revealed that the national literacy index score shows the extent to which people understand financial products. "This index can be used to help expand the penetration of financial services in the community," said Adek.

Adek also said that the survey methodology conducted by Katadata adopted the methodology carried out by OECD. The result of the Link index is also not far from the score obtained from the OECD index. So we are quite optimistic that this survey confirms the OECD survey," said Adek.

On the other hand, BNI's Human Capital and Compliance Director Mucharom, said the results of this index showed progress on financial literacy in Indonesia. This comparison can be seen through the OJK financial literacy index in 2019 which only got a score of 38.03 percent.

"This is an important asset and a strong foundation for the financial welfare of the people in Indonesia," said Mucharom.