Aiming For 90 Percent Financial Inclusion Target, Airlangga Reveals Its Challenges

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Antara)

JAKARTA - The government targets the level of financial inclusion by 2024 to reach 90 percent or an increase compared to the achievement in 2023 which has reached 88.7 percent.

Coordinating Minister for Economic Affairs Airlangga Hartarto said that achieving this target is still faced with various challenges such as reducing gaps by increasing public literacy.

"We are still seeing several challenges, namely that it has been explained, there is a gap between the level of inclusion and literacy of 35.4 percent," said Airlangga in a press conference after holding an Inclusive National Financial Council Coordination Meeting (DNKI), Friday, March 22, 2024.

Airlangga conveyed another challenge, namely disparity or differences or distance between regions and between socio-economic groups.

"Disparity at the level of inclusion and financial literacy between regions, between community social groups, and of course rural communities have not been fully served by formal financial institutions of 29.3 percent," he explained.

According to Airlangga, to achieve this target, it is necessary to increase legal protection for consumers, it is necessary to measure data and inclusive financial measurements in various community groups including people with disabilities in disadvantaged areas and Indonesian migrant workers.

In addition, Airlangga said, the government is preparing the RPP of this national financial inclusion and literacy committee as a mandate of the Financial Sector Development and Strengthening Law (PPSK).

The increase in financial inclusion in 2023, which amounted to 88.7 percent, was driven through the KEJAR (One Account One Student) program which had reached 53.9 million accounts or an increase of 2.8 percent year on year (yoy).

Furthermore, it was driven by electronic money ownership which had reached 150.7 million accounts, an increase of 11.2 percent (yoy). And driven by the opening of bank accounts for Mekaar customers of 13.68 million accounts or an increase of 92 percent (yoy).

Then 30 million QRIS merchants, 1.11 million pre-employment card distributions and subsidized financing at 4.64 million KUR debtors, and reach communities in rural areas 1.18 million well-selling agents and 932 thousand digital financial services.

"This achievement is a strong collaboration and synergy between ministries/agencies, BI, OJK, and government development partners," he concluded.