Our inclusion rate is very high, but the literacy is still low; 1:2 in comparisonJakarta (ANTARA) - Efforts to improve financial literacy and inclusion should also be made in regions and not solely in big cities, according to Financial Services Authority (OJK) Commissioner Council Head Mahendra Siregar.
During the closing of the 2022 Financial Inclusion Month at the Financial Expo (FinExpo) here on Saturday, Siregar emphasized the importance of efforts to improve the index of financial literacy to prevent the community from being trapped in illegal financial service activities.
According to Siregar, financial literacy is essential for Indonesian people amid the high financial inclusion index.
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He noted that community participation in financial products and services should be followed by an adequate understanding of the financial industry.
"Our inclusion rate is very high, but the literacy is still low; 1:2 in comparison. Thus, of those who have savings or accounts or insurance, only 50 percent (of them) understand, while the rest do not fully understand, including the risks of illegal activities," he expounded.
He affirmed that so far, the levels of financial literacy and inclusion in Indonesia continue to improve, according to the National Financial Literacy and Inclusion Survey (SNLIK).
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He remarked that all stakeholders must make efforts to improve financial inclusion and literacy in various regions outside of big cities.
Based on the 2022 SNLIK, the financial inclusion index of the Indonesian people improved, from 76.19 percent in 2019 to 85.10 percent in 2022.
Likewise, the financial literacy index rose, from 38.03 percent in 2019 to 49.68 percent in 2022.
The SNLIK 2022 data collection was conducted from July to September 2022 in 34 provinces that included 76 cities and districts, with 14,634 respondents in the age group of 15 to 79 years. The survey was conducted with a face-to-face interview method supported by the Computer-Assisted Personal Interviewing (CAPI) system.
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Translator: Indra Arief, Raka Adji
Editor: Fardah Assegaf
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