DIGITAL FINANCIAL INCLUSION IN INDONESIA

B STRATEGY Challenges and Background for National Strategy 30 25 23 C Demand Side H (People) A •No bank around or it takes time and cost to the nearest branch • Higher cost for small transaction • Low Financial literacy • Unmet product • Culture and Habit Higher cost for setting up a new branch L L E N GES G Supply Side • Complex proccess (Bank) • High formality • Open bank offices is regulated by regulations • Requirement by internal bank • Prefer non-grass root customer • Prefer bigger transaction Self Reported Barriers to Use of Formal Services Not enough money Too expensive Family member already has account Too far away Lack of necessary documentation Lack of trust 13 Religious reasons 5 18 20 Source: Demiguc-Kunt and Klapper, Worldbank, 2012 Background for National Strategy 1. Better coordination will benefit existing initiatives and projects 2. Opportunity to coordinate with clear KPI's and responsibility 3. To continue and expand current initiatives 4. To identify ways of overcoming bottlenecks 5. To propose possible/necessary breakthrough 10 10

View entire presentation