Government Aims For Expanding Financial Inclusion To 90 Percent By 2024

Illustration. (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Ministry of Finance said that the current level of financial literacy in Indonesia has only reached the level of 38.03 percent. This amount is still considered insufficient and is expected to increase to 90 percent by 2024.

Minister of Finance (Menkeu) Sri Mulyani Indrawati said, in order to achieve this target, the government prepared a strategy to reach young people by holding a Virtual Indonesia Leading Financial Literacy (Like It) event.

According to the Minister of Finance, the agenda is a collaboration with Bank Indonesia (BI), the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS).

"If the Indonesian people are more literate in terms of finances, then they will have more understanding that can determine and also maintain their welfare and assets," he said in an official statement as quoted on Wednesday, August 4.

The Minister of Finance added that increasing financial literacy in the community is needed to realize an inclusive financial system. This is because financial inclusion can encourage economic growth through a more equitable distribution of income, poverty reduction, and financial sector stability.

Furthermore, efforts to increase the level of financial literacy are not the task of one or two parties alone. This is the duty of all authorities, and needs to involve all stakeholders, including the younger generation and the community.

"We are all working together to improve financial literacy, both through digital platforms through video conferencing like this, as well as various other programs," he said.

The government, he continued, continues to strive to develop other innovative instruments to increase public awareness in investing in the financial market. Public participation in investing can encourage the nation's independence to finance development in Indonesia and become a stronger supporter of financial sector stability.

"I hope this forum will become an arena not only for discussion, but also for finding ways to increase the depth of financial markets and literacy because people will not be able to enter the financial sector without having basic literacy and understanding," he said.

For information, Like It is a series of literacy activities that aim to provide an understanding of products or investments in state securities, capital market products and how to manage finances wisely.

The series of Like It activities are a form of synergy and collaboration between authorities in an effort to encourage financial literacy, increase the retail investor base, and develop the Indonesian financial sector.

"I hope this is a series that will continue to be carried out in order to continue to expand public understanding of the importance of financial literacy and how to manage their funds prudently, but also creatively and productively," concluded Minister of Finance Sri Mulyani.