Financial Inclusion in Indonesia and Its Challenges


Journal Article


The purpose of this paper is to observe the implementation of financial inclusion in Indonesia. Using Micro Enterprises (MEs) in traditional markets around Jakarta Indonesia as the object of the research, approximately 20% MEs were found to have no banking facilities. Furthermore, instead of using credit facility, around 78% MEs still utilise their own capital to facilitate their businesses. The paper also examines the personal characteristics that can explain financial inclusion. Results revealed that only gender and education could explain financial inclusion. Morever, the findings also revealed that MEs generally demand for banking facility. Nevertheless, there are several barriers that hamper them from financially included. In particular, Self Exclusion and Marketing Exclusion are the most barriers that MEs face in accessing financial services.


Sun Y and Siagian P. (2015). Financial Inclusion in Indonesia and Its Challenges. Pertanika Journal of Social Science and Humanities, 23 (1), 85-96.


Financial Inclusion, Financial Exclusion, Micro Enterprises

Published On

Pertanika Journal of Social Science and Humanities


Yen Sun


  • Pariang Siagian

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