Financial Inclusion: Study from Indonesia

Abstract

The purpose of the study is to evaluate the implementation of financial inclusion in Indonesia. Data consists of Micro Enterprises (MEs) with revenue less than 300 million per year. The research method used is a qualitative method with data collection through literature review, surveys, and interviews. Results show that the urgent needs of MEs is credit facility, but only 39% MEs has experienced credit facility from banks. Further, age and length of business are demographic characteristics that can explain financial inclusion. The most barriers in implementing financial inclusion in Indonesia are the complex requirement from banks.