The Government Continues To Improve Inclusive Financial Literacy And Entrepreneurship Skills

Ministry of Economy (Photo: Special)

JAKARTA - The wider provision of access to formal financial services plays an important role in efforts to improve people's welfare, both access to the placement of funds and business financing in formal financial institutions.

For this reason, the Government is increasingly integrating inclusive economic and financial empowerment activities to achieve a 90 percent financial inclusion rate by 2024, as directed by President Joko Widodo as Chairman of the National Board of Inclusive Finance (DNKI).

In accordance with the mandate of Presidential Regulation Number 114 of 2020 concerning the National Strategy for Inclusive Finance (SNKI), one of the inclusive financial priority targets groups is the agricultural sector targeting farmers, breeders, and fishermen.

The agricultural sector is also one of the biggest pillars of the national economy, so that the welfare level of farmers, breeders, and fishermen needs to be encouraged continuously.

"The government is committed to developing financial literacy and entrepreneurial skills, especially for farmers as an effort to transform an inclusive and productive economy by increasing transfers of knowledge and technology as well as partnership assistance," said Deputy for Macroeconomic and Financial Coordination who is also the Chairman of the Secretariat of DNKI Ferry Irawan.

Furthermore, Ferry conveyed that efforts to scale up businesses by partnering with SOEs are expected to be able to accelerate the people's livestock cluster.

In addition, optimization of production results also continues to be encouraged through good supply and demand management, facilitating subsidy distribution, and encouraging regeneration by producing millennial breeders.

Furthermore, the government continues to strive to increase financing for farmer groups through the KUR program with relatively low interest rates.

Ferry conveyed that related to access to financing, the Government also utilizes digitalization as a new option for the community.

"The use of digitalization is considered capable of encouraging financial inclusion which will have an impact on increasing overall economic activity, for that the acceleration of digital finance is one of the strategies for developing people's breeders," he explained.