Rural Areas and Financial Inclusion

Rural financial inclusion must encourage economic growth in rural areas.

KOMPAS/DAHLIA IRAWATI

East Java Governor Khofifah Indar Parawansa attended the Bumdes Jamboree in Turen, Malang Regency, Saturday (04/05/2019).

Financial inclusion is providing access to various financial institutions and their products and services. As financial intermediaries, financial institutions play a key role in improving public welfare through the convenience of their products and services, such as savings and loans.

From the regional perspective, there is a gap in financial inclusion between urban and rural areas. A survey conducted by the Financial Services Authority (OJK) found that the financial inclusion index for rural areas in Indonesia was 68.49 percent in 2019, an increase from 63.2 percent in 2016.