Jambi (ANTARA) - The Financial Services Authority (OJK) established the Sea Village tourism site in East Tanjung Jabung, Jambi, as a location for the inclusive financial ecosystem pilot program to improve the locals' financial literacy and inclusion.

Head of Jambi OJK Yudha Nugraha Kurata stated in Jambi on Wednesday that the program is the result of collaboration of the Team for Acceleration of Regional Financial Access (TPAKD) and relevant stakeholders that is aimed at improving the local people's understanding of financial products.

"Survey shows that financial literacy and the inclusion rate in villages are still below the ones in urban areas. (This is what) motivates us to set the Sea Village tourism area for this inclusive financial ecosystem program. Moreover, the East Tanjung Jabung TPAKD immediately responds to the (initiative) and implements the program in their area," he elaborated.

He noted that in 2022, they recorded that financial literacy in Jambi's urban areas had reached 46.11 percent, whereas the villages only scored 45.87 percent.

Kurata affirmed that the program's generic model serves as an effort to improve financial access in that area through some measures, such as pre-incubation, incubation, and post-incubation stages.

In the pre-incubation process, the agency involves local students to disseminate information, map the regional financial condition, as well as conduct surveys, he explained.

They discovered during the pre-incubation period that of the 10,661 residents from three villages in that area, 1,329 had savings accounts, eight had a deposit accounts, and 61 had a checking account. There were also 219 registered students' bank accounts, he noted.

As for micro-enterprises business credit (micro KUR), with a limit of Rp50 million (US$3,324), the agency recorded that there were 31 debtors, whereas none had signed up for the super micro enterprises business credit (super micro KUR), while there were 983 debtors listed in the ultra micro-credit program (ultra micro KUR), he stated.

He also noted that the demographic of people partaking in the Work Social Security (BPJS Ketenagakerjaan) Program was concentrated only in some areas.

Kurata stated that the incubation phase of the program will be hosted for three to six months, and it will involve seven financial services industries in Jambi.

The industries will assist during the period, and the local people and MSMEs will gain greater knowledge as well as assistance through the ultra micro KUR aimed at empowering them.

"We expect that everyone in that area can access not only their savings but also other financial services products," he stated.

After the incubation period, the financial industries can facilitate the people and MSMEs in obtaining access to proper financial services they need, such as capital funding for MSMEs, once they have knowledge of good financial management.

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Translator: Tuyani, Mecca Yumna
Editor: Sri Haryati
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