Lagging Financial Literacy Leaves Students at High Debt Risk
High adoption of digital financial services in Indonesia has not been matched by adequate understanding of the risks. This phenomenon places students at risk of falling into consumptive debt within an instant, cashless ecosystem.
During a financial literacy seminar titled ‘Cashless, Careless: Becoming Financially Smart Students in the Digital Era’ at Binus Alam Sutera, a wide gap between financial inclusion and financial literacy was revealed.
The CEO and Chief Editor of Warta Ekonomi stressed that although the younger generation is highly adaptable to technology, they tend to have weak financial control. The YOLO (You Only Live Once) and FOMO (Fear of Missing Out) cultures are the main drivers of consumptive behaviour culminating in the use of online loans (pinjol) and paylater unwisely.
‘Many young people are already actively investing, but not necessarily understanding how to manage risk. This makes them vulnerable to debt traps,’ he said. Currently, domestic capital market investors are dominated by those under 30 (99.78%), while crypto investors have surpassed 21 million people.
Director of the Financial Literacy and Education Department at OJK, Andi Muhammad Yusuf, revealed that low literacy is a loophole for digital financial crime. Based on data from the Indonesia Anti-Scam Center (IASC), losses from digital financial crime reached Rp9.1 trillion from November 2024 to January 2026.
‘People use financial products but do not understand what they are using. This contains risk, including rising complaints and potential crime,’ Andi emphasised. OJK is now ramping up the National Movement for Financial Smartness (Gencarkan) to curb the losses.
The digital investment sector also shows dynamic movement. CFX Director Lukas Lauw said that 52% of crypto investors in Indonesia come from ages 18–24. However, price sensitivity is very high, evidenced by transaction values corrected to Rp75.8 trillion in Q1 2026.
President Director Gunawan Herman of Dupoin Futures Indonesia added that students should consider other instruments such as commodity futures trading as a way to learn about the global economy, but with high caution toward high-risk, high-gain risks.
As a preventive measure, ShopeePay Indonesia President Director Eka Nilam Dari reminded of important security features such as two-factor authentication (2FA) and PIN/OTP verification to protect digital transactions from unauthorised access. (E-3)
Financial literacy is not only about being able to calculate income and expenditure, but also about the ability to manage lifestyle and spending habits.
OJK Commissioner Adi Budiarso reminded of the importance of financial literacy and prudent attitude before conducting transactions, especially in investments and online loans.
Hundreds of businesses joined the UMKM Digital Finance Tour in Tangerang to boost financial literacy and online market strategies via digital platforms.
Strengthening inclusion and financial literacy is expected to support deepening of the financial sector, which will drive real sector growth.
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