ADB Provides USD 500 Million Loans To Encourage Financial Inclusion Reform In Indonesia

US dollar (photo: Antara)

JAKARTA - The Asian Development Bank (ADB) has approved a loan worth US$500 million or around Rp7.93 trillion for the promotion of financial inclusion in Indonesia.

Meanwhile, these funds will be used to increase access to financial services for vulnerable groups, especially micro, small and medium enterprises (MSMEs), women, youth, and residents in rural areas.

Director of ADB for Indonesia Jiro Tominaga explained that this new loan marks the third subgram of the Innovative Financial Inclusion promotion program, which supports ongoing reforms in Indonesia towards the development of a more inclusive financial sector.

"This program focuses on three important fields of reform, namely perfecting financial inclusion infrastructure, increasing access to financial services for marginalized groups, and strengthening consumer protection frameworks by utilizing technology and financial innovation," he explained in his statement, Thursday, December 5.

Jiro conveyed that with strong macroeconomic support and a framework for financial stability policies, financial inclusion will grow, including in remote areas, through sustainable efforts that take advantage of digital technology.

"ADB is proud to support Indonesia's commitment to increasing financial inclusion through this program," he said

According to Jiro, through a combination of digital innovation with targeted support for vulnerable groups, this initiative will help create a more resilient and inclusive financial sector.

"ADB is committed to supporting Indonesia in an effort to achieve universal financial access," he explained.

Jiro conveyed that this program helps advance financial inclusion in Indonesia through a number of important initiatives such as expanding the digital financial ecosystem, implementing the 2025 Bank Indonesia Payment System Blueprint.

Then it can help such as access to regional finance, support MSMEs in eastern Indonesia, including youth entrepreneurship, and digital transformation of financial access for women.

"Continuing ADB support since 2020, the third sub-program has overcome a number of new challenges, including the impact of climate change on marginalized populations in order to improve the health and financial resilience of the population," he said.

Jiro conveyed that ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, and continues its efforts to eradicate extreme poverty.