Financial literacy plays an important role and can contribute to better financial decisions by individuals and corporations.
Jakarta (ANTARA) - Increasing financial literacy and inclusion among the people can create a more stable financial system, according to Deposit Insurance Corporation's (LPS') Chairman of the Board of Commissioners Purbaya Yudhi Sadewa.

"Financial literacy plays an important role and can contribute to better financial decisions by individuals and corporations," Sadewa noted during an online discussion titled "Advancing Indonesia's Financial Literacy" here on Tuesday.

Sadewa explained that this could occur since increasing financial literacy and inclusion can foster the development of deep financial markets.

The creation of a deep financial market can enhance the efficiency of the financial market as well as expand the financial market's reach to all societal levels.

This expansion of reach can be achieved through the ease of access and diverse investment options.

Related news: Jokowi stresses on raising financial literacy to boost micro economy

Sadewa elaborated that an efficient financial market will then support the creation of a more stable financial system that can expedite economic growth.

The National Financial Literacy and Inclusion Survey (SNLK) conducted by the Financial Services Authority (OJK) in 2019 indicated that the financial literacy index was recorded at 38.03 percent, while the financial inclusion index was recorded at 76.19 percent.

These figures are an improvement as compared to OJK's 2016 survey wherein the financial literacy index was recorded at 29.7 percent, while the financial inclusion index was recorded at 67.8 percent.

"Such improvements are the result of the hard work of the government, authorities, and financial service industry that continue to collaborate to increase the citizens' financial literacy and inclusion," Sadewa noted.

Nevertheless, Sadewa made assurance that the LPS will continue to disseminate information to boost financial literacy through collaboration with various stakeholders, including the mass media.

In addition, his party has diligently informed the public through various communication channels, such as social media, to handle hoaxes and to boost positive sentiment toward the people. Related news: Indonesia's financial inclusion index increased in 2019: Jokowi
Related news: Indonesia's financial inclusion index increased in 2019: Jokowi



Translator: Astrid Habibah, Fadhli Ruhman
Editor: Suharto
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