LPS strengthens financial literacy in Islamic boarding school communities
Surabaya, East Java (ANTARA) - The Indonesia Deposit Insurance Corporation (LPS) is strengthening financial literacy among Islamic boarding school communities by encouraging students, pesantren caretakers and religious leaders to understand the importance of saving with banks.
Deputy Chairman of the LPS Board of Commissioners Farid Azhar Nasution said financial literacy is not limited to introducing financial products and services but also involves building the public’s ability to make sound, safe and responsible financial decisions.
“Financial literacy is ultimately not only about how far the public recognises financial products and services, but about the ability to make sound, safe and responsible financial decisions,” Farid said in a statement received in Surabaya, East Java, on Saturday.
Farid, who attended the Community Empowerment Assembly themed Building Community Independence Towards an Empowered Indonesia at MAN 4 Jombang, East Java, wants pesantren communities to understand the role of LPS in maintaining public trust in the banking system.
According to him, pesantren and religious leaders hold a strategic position in broadening financial understanding because they are close to the community while also serving as a source of knowledge and reference for their surroundings.
Therefore, LPS is encouraging the public, including pesantren communities, to understand the benefits of saving with conventional banks as well as sharia banks and the applicable deposit guarantee provisions.
Farid explained that LPS guarantees bank customer deposits in accordance with applicable regulations, and understanding the guarantee requirements is important so that the public knows how their deposits can obtain LPS protection.
He said that if pesantren communities have a good understanding of the financial system, they can contribute to supporting improved financial literacy in the surrounding community.
Pesantren are considered not only places of religious education but also have great potential as spaces for strengthening community independence, including in financial management.
Moreover, he assessed that public trust is one of the important foundations in maintaining the sustainability of the financial system, and literacy improvement needs to be carried out continuously.
This will ensure that the public not only has access to financial services but is also able to use them according to their needs and wisely.
“This is where the role of pesantren and religious leaders becomes very important as a source of knowledge as well as a driving force within the community,” he said.