OJK Kepri shares tips on ideal monthly expenditure ratio for the public

Tanjungpinang — The head of the Financial Services Authority (OJK) for the Riau Islands (Kepri), Sinar Danandjaya, has issued a set of tips on the ideal monthly expenditure ratio to help the public become more financially literate. ‘We have an ideal financial management ratio, namely 10-20-30-40,’ Sinar said in Tanjungpinang on Tuesday.

Sinar gave an example: when a household earns Rp10 million a month, 10 percent or Rp1 million should be allocated to social needs such as zakat, almsgiving, and helping family members.

Then 20 percent or Rp2 million should be saved and invested for the future, such as education investments.

Next, 30 percent or Rp3 million should be used for loan repayments. Therefore, households should ensure their ability to repay loans does not exceed Rp3 million.

Finally, 40 percent or Rp4 million should be used for various monthly household needs, such as food and drink, shopping, transport and electricity.

‘From this, the public can really manage their lifestyle. If the income is Rp10 million, a lifestyle of up to Rp4 million should be allowed,’ said Sinar.

Moreover, Sinar continued, OJK Kepri urges the public to be wiser when applying for loans in the digital era, which provides easy access to online lending platforms (Pindar). He emphasised that people should use such borrowing for productive needs, ranging from business development to educational investments and urgent needs.

The public is urged to avoid borrowing for a lavish lifestyle, unnecessary consumption, or online gambling (judol). ‘There is an interesting phenomenon where people use online loans for judol. This condition also affects divorce rates in Batam, where 60 percent of triggering factors are economy, debt and judol,’ Sinar said.

He added that OJK Kepri continues to improve financial literacy so that the public truly understands how to manage money properly.

Recently, OJK, in collaboration with the Kepri Province’s Library and Archives Service (DPK), organised a talk show for librarians and cultural figures on financial management.

OJK has also created a Learning Management System (LMS) that the public can use for free on how to plan and manage finances effectively.

‘In short, the public must borrow money prudently according to their ability, and use it for productive purposes,’ concluded Sinar, Head of OJK Kepri.