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Application of Financial Inclusions in Indonesia: A Study on Vulnerable Group

Author

Listed:
  • Yolanda Masnita

    (Trisakti University, Indonesia)

  • Hermien Triyowati

    (Trisakti University, Indonesia)

  • Khomsiyah

    (Trisakti University, Indonesia)

Abstract

Financial inclusion refers to all efforts aimed at eliminating all forms of price and non-price barriers to people’s access to financial services. Financial inclusion is a national development strategy and an influential agenda. The aims of this research are to examine any informal norms or limitations that affect the realization of financial inclusion. Regulative, normative, procedural, and declarative cognition as relaxed norms are thought to influence the implementation of financial inclusion, especially for vulnerable groups. Financial inclusion aims to encourage economic growth through income distribution, poverty alleviation, and financial system stability. This strategy is targeted at groups experiencing obstacles in accessing financial services, especially groups with the greatest needs and financial services that have not been fulfilled, such as poor people and vulnerable groups, in four different locations in Indonesia. As a result of testing several financial inclusion instruments for 254 respondents in this group, it was found that users of financial institution services, both men and women, had similar roles and needs; though government regulation through normative aspects has a positive effect, the procedural elements hurt financial inclusion. Moreover, government regulation through declarative cognitive aspects (the ability to use the dimensions of memory and cognitive skills) has a positive effect on financial inclusion.

Suggested Citation

  • Yolanda Masnita & Hermien Triyowati & Khomsiyah, 2019. "Application of Financial Inclusions in Indonesia: A Study on Vulnerable Group," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 7(3), pages 22-33.
    • Handle: RePEc:ejn:ejefjr:v:7:y:2019:i:3:p:22-33
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    References listed on IDEAS

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    Cited by:

    1. Samson Adewumi, 2020. "Life after Retirement and Struggle for Pension in Osun State, Nigeria," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(3), pages 140-153.
    2. David Mhlanga & Steven Henry Dunga, 2020. "Measuring Financial Inclusion and its Determinants among the Smallholder Farmers in Zimbabwe: An Empirical Study," Eurasian Journal of Business and Management, Eurasian Publications, vol. 8(3), pages 266-281.
    3. David Mhlanga & Steven Henry Dunga & Tankiso Moloi, 2020. "Financial Inclusion and Poverty Alleviation among Smallholder Farmers in Zimbabwe," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(3), pages 168-182.

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