OJK pushes financial literacy to keep pace with digital inclusion
The Financial Services Authority (OJK) continues to encourage improvements in financial literacy to keep pace with the rapid growth of digital financial inclusion, ensuring the public not only has access to digital financial services but also understands the benefits and risks of their use.
Adi Budiarso, Chief Executive of the OJK’s Supervisor of Financial Sector Technology Innovation, Digital Financial Assets and Crypto Assets, stated that the national financial inclusion index has reached approximately 85 percent, while the financial literacy index remains at around 65 percent.
“We want literacy and inclusion to be equal, so that access to finance or the current widespread digitalisation is accompanied by adequate literacy, so that people are not exposed to excessive risk,” Adi said during a discussion on alternative credit scoring for MSMEs in Jakarta on Thursday.
According to him, the increased use of digital financial services must be accompanied by public understanding of various risks, ranging from cybercrime and fraud to other criminal acts in the financial sector that could threaten business sustainability and the public’s financial condition.
Beyond improving financial literacy, the OJK is also encouraging the strengthening of productivity among micro, small, and medium enterprises (MSMEs) through entrepreneurship development, leadership, business digitalisation, and the use of artificial intelligence (AI) technology.
Adi noted that the OJK has established synergies with several ministries, including the Ministry of Communication and Digital Affairs and the Ministry of Micro, Small, and Medium Enterprises, to develop mentoring programmes for business actors to improve access to AI, particularly in the ultra-micro segment.
He added that the development of digital technology is also opening wider opportunities for the public to access savings, financing, and investment instruments at more affordable values.
“Going forward, the public will be able to access various financial innovations, including investments based on digital assets and blockchain technology, so that more people can participate in the formal financial sector,” he said.
On the other hand, the OJK is also continuing to develop innovations in the digital financial sector, including alternative credit scoring in synergy with Women’s World Banking, as an effort to expand financing access for MSMEs that do not yet have a credit history with financial institutions.
Adi assessed that this approach is important considering that a large portion of Indonesia’s population remains in the underbanked group or the informal sector, which has not optimally utilised financial services.
He expressed hope that strengthening financial literacy, expanding access to digital financial services, and various financing innovations can proceed in tandem to increase MSME productivity, broaden financial inclusion, and support national economic growth.