The Impact of Gross Enrollment Ratio (GER) of Tertiary Education in Indonesia on the Literacy and Inclusion Index: A Case Study Of Islamic Finance in Indonesia

Zulfikar Hasan,Saifunnajar Saifunnajar

doi:10.24235/amwal.v13i2.7599

Abstract

The inclusion and literacy of Islamic finance is an index that can use as a guide in assessing whether people living in a country know about Islamic finance. Multiple variables can conclude whether a nation knows Islamic banking, one of the variables that can use as guidelines are the literacy and inclusion index published by affiliated organisations such as the Financial Services Authority (OJK). The Financial Services Authority does a survey that can use as further research on the knowledge of the Indonesian people about Islamic Banking. Overall, the third National Financial Literacy Survey (SNLIK) conducted by the Financial Services Authority (OJK) this year showed that the financial literacy index reached 38.03%, and the financial inclusion index 76.19%. This figure improved related to the results of the 2016 OJK survey, correctly the financial literacy index 29.7% and the financial inclusion index 67.8%. Based on regional levels, for urban financial literacy index reached 41.41% and economic inclusion of urban areas amounted to 83.60%. In comparison, the literacy index and financial inclusion of rural communities were 34.53% and 68.49%. The survey results also showed that based on gender literacy index and economic inclusion of men were 39.94% and 77.24%, relatively higher than women at 36.13% and 75.15%. OJK will use the results of the 2019 financial literacy survey to refine the national financial literacy development strategy that is more effective and targeted.

Highlights

Indonesia is a country that has high economic potential; the potential that started to be noticed by the international community
Financial literacy consists of some knowledge and abilities related to finance owned by individuals to be able to manage or use a certain amount of money to improve their standard of living
It can conclude that the level of Gross Enrollment Ratio of the University is not significant to the literacy and inclusion of Islamic finance in Indonesia

Summary

Introduction

Indonesia is a country that has high economic potential; the potential that started to be noticed by the international community. Indonesia has various characteristics that put this country in a unique position to experience accelerated economic development. In recent years there has been powerful support from the central government to control Indonesia's dependence on (raw) commodity exports while enhancing the role of manufacturing industries in the economy. Infrastructure development is the primary purpose of the government, and that needs to cause a multiplier impact on the economy. Growth in third party funds (DPK) and lending began to slow down. In 2013, DPK growth fell sharply from 15.59% to only 8.89%. While the credit increase fell from 22.64% to 16.57%, the slowing trend continues to this day, namely the growth of deposits and lending is still trying to return to the pattern before 2013. The government, along with the monetary policy authority, has sought to encourage the performance of banking institutions by making expansionary policies

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