"People in remote areas, who may not be part of any financial institution, can use digital financial services to conduct financial transactions," the minister stated at the G20 Global Partnership for Financial Inclusion (GPFI) High-Level Symposium followed online here on Tuesday.
G20 is an international forum comprising 19 countries and the European Union that work together to handle major issues. Indonesia is holding the presidency of the grouping this year.
The GPFI is a part of the G20 Finance Track. According to the G20 official website, the platform focuses on enhancing access to and the use of formal financial services for families and businesses.
Indrawati said Indonesia's financial inclusion has, so far, made progress, whereas, in 2021, the level of financial inclusion in the country had reached 83.6 percent.
For 2024, the government targets an even higher figure of 90 percent for economic inclusion. Thus, digitalization is a key component for the government to achieve the target.
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The step that needs to be taken to achieve inclusivity is focusing on integration as well as other components, such as involvement, encouragement, and the strengthening of values.
Apart from inclusivity, the minister assessed that digitalization also reduces the cost of transactions among vulnerable groups, such as micro, small, and medium enterprises (MSMEs).
"Digitalization and MSMEs are interrelated, especially in terms of finance," she remarked.
To this end, the Indonesian government persistently pushes for the digitalization of MSMEs. As of June 2022, at least 19.5 million MSMEs had entered the digital ecosystem.
For 2024, the government is targeting at least 50 million MSMEs to have entered the digital ecosystem.
The government has implemented digitalization by providing and introducing payments, bookkeeping, and digital marketing in order to support and empower MSMEs.
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Translator: Agatha Olivia, Raka Adji
Editor: Rahmad Nasution
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