Abstract
Financial inclusion has been widely discussed in the global level. The increasedengagement in discussion of financial inclusion is inseparable from the implementationof policy priorities which are seemingly leaning towards improving financial inclusionto tackle poverty and growing inequality in a country. This article seeks to identifywhether regional variables (income level, educational level, income inequality,population size and banking accessibility) are significant on influencing financialinclusion in Indonesia. This study proxied financial inclusion level by measuring thefinancial inclusion index using the method developed by Sarma in 2012. The researchis conducted for 3 years, between 2012-2015. Employing the panel data estimationmethod, the results indicate that income level, educational level, and bankingaccessibility possess significant impact on financial inclusion in regional Indonesia.Keywords: Financial Inclusion; Financial Inclusion Index; Banking Accessibility.JEL Classifications: G10; G20; G21.
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