Financial inclusion is one of the pillars of inclusive growth (World Economic Forum, 2017). Financial inclusion can have a large multiplier impact on the economy, one of which is poverty alleviation. Indonesia has carried out several financial inclusion programs as a moderator of economic development. The Indonesian government has gradually set targets for financial inclusion coupled with strategic efforts to achieve these targets. Indonesia’s financial inclusion rate has increased significantly from 49% in 2017 to 51,7% in 2021 (Global Financial Index, 2021). The percentage of adults in Indonesia who have a bank account increased from 47% in 2017 to 52% in 2021.

The latest data sourced from a survey by the Financial Services Authority (OJK) shows that the level of financial inclusion reached 76.19% in 2019, and this figure exceeded the set target of 75% (SP/58/DHMS/OJK/XI/2019). Based on Presidential Regulation (Peraturan Presiden/Perpres) No.114/2020 concerning the National Strategy for Financial Inclusion (Stratei Nasional Keuangan Inklusif/SNKI), the Government of Indonesia has set a new financial inclusion target of 90% by 2024.

Various strategic efforts and initiatives have been carried out by the Government through synergistic cooperation between institutions, one of which is the Asian Development Bank (ADB) and the German Development Bank (Kreditanstalt für Wiederaufbau/KfW) which have launched the first policy-based loan program for digital financial inclusion in Indonesia in 2021 (PIFIP I).

DEFINIT as a consulting agency with long experience and extensive capabilities in the development of financial inclusion, this year was trusted by KfW and ADB to provide input in the preparation of recommendations and suggestions for the development of financial inclusion through initiatives, synergies, and policies, in relation to conditions and developments. digital finance in Indonesia as an effort to achieve the financial inclusion target by 2024.

The recommendation points that will be produced will also become the basis for ADB and KfW in policy formulation in relation to the implementation of the PIFIP II program. Various other consulting projects that have been completed and received positive feedback from clients can be read more fully on the following page: Consulting Project.