JAKARTA - The Financial Services Authority together with the Government is determined to continue to improve access to financial services for the community by increasing the role of the Regional Financial Access Acceleration Team (TPAKD) and the development of the Micro Waqf Bank (BWM).
"Efforts to expand access to public finance continue to be a priority for OJK together with Bank Indonesia and the Government, both central and regional, because financial access is closely related to improving public welfare including to support the availability of funding sources for national economic development," said OJK Board of Commissioners Chairman Wimboh Harjito when giving remarks to the National Coordination Meeting of the TPAKD and the 2019 BWM National Silaturahmi in Jakarta on Tuesday.
Indonesian President Joko Widodo on that occasion gave an appreciation to OJK who had formed the Regional Financial Access Acceleration Team which was expected to provide concrete results in increasing financial literacy and inclusion.
"This TPAKD if managed with good management will be able to encourage literacy and financial inclusion to jump up," he said through a OJK Public Relations press release.
The President expects various parties to support the tasks of the TPAKD including regional heads and heads of regional offices to establish groups of small businesses in the community who then seek access to finance to banks or other formal financial institutions.
Wimboh added that increasing public access to finance will encourage the amount of savings and investment which will then be reflected in lending or financing from the financial services sector to drive the movement of the economy. Moreover, for Indonesia, the level of financial inclusion is still relatively low compared to neighboring countries.
"With the formation of this TPAKD, it is expected to be able to support various Government priority programs especially in developing new sources of economic growth in the region, such as industry or export-oriented MSMEs, import substitution and also the tourism industry," he said.
As of November 2019 164 TPAKDs have been formed with 32 details at the provincial level and 132 at the district / city level which have carried out various work programs such as expanding financial access through business matching to various financial products such as BWM financing, as well as aligning with the government program People's Business Credit (KUR ), Ultra Micro Credit (UMi), Non-Cash Social Assistance and others.
Through synergies with various parties, several programs to increase financial access to October 2019 have been carried out, among others, MSMEs' credit has reached 20% with a value of Rp 1,102 trillion, KUR disbursed reached Rp127.3 trillion or 90.9% of the 2019 target of Rp140 trillion. The Net Program has channeled Rp31.9 trillion in credit in the fisheries sector, then the Laku Pandai Program has collected Rp2.21 trillion in savings from 25.8 million residents in the region.
The Simple Program has also raised savings of IDR 8.76 trillion from 21.6 million students in 350 thousand schools. In addition, micro-insurance to protect small communities was distributed to 25.8 million participants. Going forward, OJK proposes a TPAKD program in 2020 namely "Increasing the Empowerment of MSMEs in the Regions through Strengthening the Role of the Financial Services Sector", with the main activities: Business Matching TPAKD and Credit / Financing Against Moneylenders.
Meanwhile, for the Micro Bank Waqf program to date 55 Bank Waqf have been formed which have distributed loans amounting to Rp31.5 billion to 24,021 customers. Jo