OJK Launches Financial Smart National Movement

The Financial Services Authority (OJK) officially launched the National Financial Smart Movement. (Photo: Aris Nurjani/VOI)

The Financial Services Authority (OJK) has officially launched the National Financial Smart Movement (GENKAN) in order to encourage a massive and equitable increase in financial literacy and inclusion throughout Indonesia.

Chairman of the OJK Board of Commissioners Mahendra Siregar said that the GENERANKAN program was prepared as an effort for all stakeholders to orchestrate movements nationally in order to increase financial literacy and inclusion in supporting economic growth and improving people's welfare.

According to Mahendra, the GENCARKAN program also refers to the results of the 2024 National Financial Literacy and Inclusion Survey (SNLIK) organized by OJK with BPS which states that the current level of financial inclusion in Indonesia is 75.02 percent, meanwhile the Indonesian population financial literacy index is 65.43 percent.

Mahendra said that based on the results of SNLIK 2024, it shows that there is still room to increase financial literacy and inclusion in Indonesia.

"We believe that strengthening the two is the key to increasing market liquidity and deepening, which will have an impact on the development of the financial services sector, including increasing financing distribution," Mahendra said in the Launch of the National Financial Smart Movement (Gencana), Thursday, August 22.

According to Mahendra, if this is pushed continuously, it will provide leverage for national economic growth.

In addition, Mahendra said that the OJK also sees the rampant illegal financial activities and online gambling as well as groups of vulnerable financial communities who need special attention such as women, youth and students, MSMEs, 3T communities (frontier, disadvantaged, and outermost), as well as disability groups and Indonesian migrant workers.

Mahendra said that to encourage an increasing financial literacy and inclusion that is increasingly progressive and to protect the community, active participation of all stakeholders is needed starting from the Central Government, Regional Governments and financial service business actors to collaborate to carry out massive and equitable GENERAL in all regions.

Meanwhile, Coordinating Minister for the Economy Airlangga Hartanto, who also acts as the Daily Chair of DNKI, said that GENCARKAN is a tangible manifestation of the collaboration and coordination of the implementation of the National Financial Inclusive Strategy (SNKI).

Airlangga also appreciated the initiative of the Financial Services Authority in making breakthroughs in accelerating and equitable financial literacy and inclusion through the GENERANKAN program.

"DNKI always and together with OJK encourages all parties, all Ministries/Institutions, Regional Governments, industry, communities, academics, as well as media to participate, collaborate, to succeed in the launching of this National Financial Smart Movement program," he explained.

Airlangga believes that financial literacy and inclusion will help millions of Indonesians to be free from poverty and will eventually change the progress of the Indonesian economy.

Chief Executive of the Behavior Supervisory of Financial Services Business Actors, Education and Protection of OJK Consumers, Friderica Widyasari Dewi, said that in terms of financial literacy, the GENERANKAN program is expected to reach all regencies/cities and target all priority groups with the support of the PUJK office network spread throughout Indonesia.

"GENCARKAN Program also encourages the birth of 2 Million Ambassadors and Literacy Agents and Financial Inclusion that can provide a multiplier effect through various financial education activities for the wider community. The GENERANKAN program will also be carried out in multichannels so that it is expected to reach up to 50 million Indonesians," said Friderica.

Through the GENCARKAN program, it is targeted that 90 percent of Indonesian students will have savings in 2025.

Furthermore, through the savings savings of Students and Youth (SiMuda), it is hoped that as many as 2.5 million groups of students and youth have an account.

Friderica said that this program also encourages the opening of MSME credit access through the Credit/Financing Against Moneylenders (K/PMR) program so that it can reach 1.6 million debtors and accelerate the use of financial products by 30 percent of groups of people with disabilities.

"The 'End-state' that we hope that through the GENERANKAN Program is that the National financial inclusion index can reach 98 percent at the celebration of Indonesia Gold in 2045," said Friderica.