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🇮🇩 Indonesia /Economy & Trade

15 million Indonesians still lack savings accounts, deposit insurer sets annual target

From Republika · () Indonesian

Translated from Indonesian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • Indonesia’s Deposit Insurance Corporation aims to help two million unbanked people open accounts each year.
  • The agency hopes the number of people without accounts will fall from about 15 million to about 13 million the following year.
  • Officials said financial inclusion also requires education, because many account holders remain inactive or lack sufficient understanding of financial services.

Indonesia’s Deposit Insurance Corporation, known as LPS, aims to help two million people who do not have bank accounts open one each year. About 15 million people currently remain unbanked, LPS Deputy Chairman Farid Azhar Nasution said at the Lampung Financial Festival in Bandar Lampung.

Farid said the agency hopes the number will fall to about 13 million the following year. But he stressed that financial inclusion is not only about opening accounts. Some people have accounts but no longer use them, creating another issue for the agency to address.

“We provide information and financial education. If an account is not being used, just close it, because the bank does not have the authority to close it for you,” Farid said. He also warned that inactive accounts could be used for improper purposes.

We provide information and financial education. If an account is not being used, just close it, because the bank does not have the authority to close it for you.

· Farid Azhar NasutionThe LPS deputy chairman discussed how to address inactive bank accounts.

Financial inclusion has reached 93 percent, according to Farid, but access has not necessarily brought sufficient understanding. People may open accounts online and use financial services while still having low financial literacy. LPS plans to expand education through direct outreach and digital channels, with a particular focus on younger people.

“The most important thing for us is that the message gets through. Financial literacy must reach everyone, especially the younger generation,” Farid said.

The most important thing for us is that the message gets through. Financial literacy must reach everyone, especially the younger generation.

· Farid Azhar NasutionFarid described the agency’s priority as it expands financial education.
About this summary

Originally published by Republika in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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