One Citizen, One Account: Opportunities, Risks, and Policy Alternatives

President Prabowo Subianto has requested that all Indonesian residents have prepared bank accounts, specifically through BRI and Bank Syariah Indonesia. Coordinating Minister for Economic Affairs Airlangga Hartarto explained that these accounts could serve as channels for government programmes while simultaneously increasing financial inclusion and literacy.

Although the term ‘bank statement’ was used in the initial statement, the intention appears to be basic transaction or bank accounts; a bank statement is actually a record of a customer’s transaction history. While opening accounts can expand financial access and improve the distribution of government payments, the appropriateness of a universal approach must be tested against Indonesia’s current conditions.

The 202<0xC2>5 National Survey of Financial Literacy and Inclusion (SNLIK), conducted by OJK and BPS, noted that the financial inclusion index has reached 80.51 per cent, whereas the financial literacy index stands at only 66.46 per cent. This 14.05 percentage point gap indicates that access to and the use of financial products are developing faster than the public’s ability to understand their benefits, costs, and risks.

This data indicates that Indonesia’s problem is no longer merely about bringing people into the financial system. The challenge is shifting towards the quality of usage: whether accounts are active, used safely, support savings and productive activities, and do not encourage excessive credit.

Lessons from Other Countries

India has implemented a model closely resembling Indonesia’s idea through the Pradhan Mantri Jan-Dhan Yojana (PMJDY) since 2014. This programme provides basic accounts without minimum balances and links them to Aadhaar identities and mobile phone numbers. The integration of Jan Dhan, Aadhaar, and Mobile allows various government subsidies and benefits to be transferred directly to recipients. According to the official PMJDY portal, the programme does not stop at accounts but covers payments, savings, credit, insurance, pensions, and financial education. As of August 2026, approximately 590 million accounts have been opened. However, transparency data shows that about a quarter are inactive. India’s experience demonstrates that expanding ownership can be done quickly, but sustainable usage is much more difficult.

Another model is implemented in Brazil through the digital social account policy instrument. The Poupança Social Digital, managed by Caixa Econômica Federal, was initially used to pay emergency aid during the pandemic and was later expanded to other social and employment programmes. Accounts are opened because an individual is a recipient of a government programme, rather than to meet a universal ownership target. Other models are also run by South Africa and the Philippines using more decentralised approaches. The government sets standards for low-cost basic accounts with simple requirements, while the public continues to choose their banks. This model is more targeted and maintains more competition compared to assignments concentrated on a few banks.

Potential Economic Benefits

Individual accounts can increase the speed and accountability of government payments. Direct transfers reduce distribution chains and the costs of collecting aid. However, accounts only improve payment channels. The accuracy of social assistance, for example, remains determined by the quality of social data and the mechanism for determining recipients. Transaction histories can also form financial profiles for informal workers and micro-businesses that lack payslips or collateral.

With customer consent and adequate data protection, cash flow information can be used to assess repayment ability, thereby expanding productive credit. New accounts can also strengthen digital payments. Bank Indonesia noted that by the end of 2024, QRIS had reached approximately 50.5 million users and 32.7 million merchants, with the majority of merchants coming from the MSME group. Accounts connected to QRIS and BI-FAST can lower transaction costs and reduce dependence on cash.

At a macro level, the shift from cash to bank deposits can increase low-cost funds and strengthen the banking sector’s intermediation capacity. However, opening accounts does not automatically increase the money supply because, in the initial stages, it only changes the form of money storage. The impact on credit and growth still depends on account activity, demand for financing, debtor eligibility, bank capital, and monetary policy conditions. Accounts can also strengthen the transmission of fiscal policy.

Faster and more targeted aid transfers have the potential to immediately increase consumption, as low-income households generally have a relatively high propensity to consume additional income. The impact on growth will be greater if the increase in demand is met by domestic production. Conversely, the benefit diminishes if the additional consumption is largely met through imports.

Opening accounts is not inherently inflationary as it does not create new income or purchasing power. Inflationary risk arises if accounts are used to distribute additional fiscal transfers or encourage the expansion of consumer credit faster than production capacity growth. Price pressures can also occur locally when aid is disbursed simultaneously in regions with limited supply and distribution. Therefore, the government and financial authorities need to monitor not only the number of accounts but also credit growth, transfer usage, and supply responses to ensure that the benefits of intermediation and demand stimulus do not turn into inflationary pressure.

High Access Changes Priorities

The financial inclusion index of 8…