Abstract
Recent study showed that increasing access and usage of banking services reduce income inequality. Nowdays banking access in Indonesia is increasing but income equality gap is widening. Therefore, by using secondary data from 33 provinces 2007- 2011, this paper aims to measure the level of access and usage for financial services across provinces in Indonesia by Index of Financial Inclusion, analyze the factors that affect financial inclusion by panel tobit regression, and describe the relationship between financial inclusion and income distribution in Indonesia. The results show that the level of financial inclusion in Indonesia is classified as low. The size of the economy and income inequality positively affect the level of financial inclusion. Opposite the research hypothesis, widening income inequality lead to higher financial inclusion in Indonesia. Moreover, the number of mobile phone and the internet user affect positively the level of financial inclusion in Indonesia. Income inequality and financial inclusion has a one-way relationship, income inequality affects financial inclusion in Indonesia but does not vice versa. Keywords : Financial Inclusion, income inequality
Highlights
Recent study showed that increasing access and usage of banking services reduce income inequality
By using secondary data from 33 provinces 20072011, this paper aims to measure the level of access and usage for financial services across provinces in Indonesia by Index of Financial Inclusion, analyze the factors that affect financial inclusion by panel tobit regression, and describe the relationship between financial inclusion and income distribution in Indonesia
The results show that the level of financial inclusion in Indonesia is classified as low
Summary
Sektor perbankan merupakan salah satu sektor yang menguasai industri keuangan Indonesia. Perbankan memiliki aset terbesar dibandingkan dengan lembaga keuangan yang ada di industri keuangan Indonesia yaitu mencapai Rp 4.330 triliun atau 78 persen dari total aset industri keuangan pada tahun 2012. Saat ini sektor perbankan di Indonesia mengalami perkembangan yang positif, hal ini dapat dilihat dari kontribusi perbankan terhadap PDB Indonesia yang setiap tahunnya terus meningkat. Kontribusi sektor perbankan terhadap PDB Indonesia tahun 2013 mencapai Rp113 triliun, sedangkan pada tahun 2007 hanya mencapai Rp78 triliun (BPS 2014). Perkembangan perbankan juga dapat dilihat dari jumlah infrastruktur fisik yang terus mengalami peningkatan. Salah satu infrastruktur fisik dari perbankan adalah kantor cabang yang didirikan di daerah-daerah yang tersebar di seluruh wilayah Indonesia. BUK yang tersebar di seluruh Indonesia sebesar 20% dari 9110 kantor pada tahun 2010 menjadi 18.303 kantor pada tahun 2013 (SPI 2013)
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