1、Seoul, 26 February 2014,Jakarta, 8 April 2014,The Role of Authorities in Promoting Financial Inclusion through Islamic Finance,Mulya E. Siregar Deputy Commissioner of Banking Supervision Indonesian Financial Services Authority,Islamic Financial Services Board Seminar on Financial Inclusion Jakarta,
2、31 March 2015,Ahmad BuchoriSeminar on Islamic Microfinance for Poverty Alleviation in OIC Member Countries Bogor, 14-15 May 2016,Agenda:,#1,Financial Inclusion: a Global Agenda,#3,Enhancing Inclusion through Islamic Finance,#2,Financial Inclusion as National Agenda: Indonesian case,Financial Inclusi
3、on: a Global Agenda,Financial inclusion has attracted significant concern among policy makers and various stakeholders as recession spread in the aftermath of 2008 financial crisis, which increase economic inequality. The level of financial inclusion varies between regions, but generally a universal
4、 financial inclusion means bringing the 2.5 billion people currently excluded, into formal financial system, and filling the USD2 trillion financing gap to SMEs in emerging and developing economies. The poor, women, youth, and rural residents tend to face greater barriers to access financial service
5、s. As for firms, younger and smaller firms are likely to confront more binding constraints to finance (35% of SMEs in developing economies perceived access to finance as major obstacle to their operations) In 2010, the G20 established Global Partnership for Financial Inclusion and has since use it a
6、s platform to extend leadership in making national and collective commitments for financial inclusion.,3,G20: 10 Action Areas,Accelerate & replicate successful policy reforms that facilitate the expansion of financial services to SMEs Establish the SME Finance Forum as global center for good practic
7、e knowledge exchange & promotion Improve financial access through the SME Finance Compact, SME Finance initiative & key development achievements Mainstream financial inclusion in the work of the standard setting bodies and other relevant global bodies & increase understanding of the interdependence
8、of financial inclusion, stability, integrity & consumer protection Encourage effective & consistent incorporation of financial inclusion in financial sector assessment Improve the capacity of public authorities & other relevant stakeholders to develop & implement financial literacy & consumer protec
9、tion measures Promote consumer protection and financial education good practices for digitally delivered financial products & services Help to analize & consider ways to address the MTO bank account closure issue Reduce the cost of sending remittances Expand opportunities for innovative technologies
10、 to grow responsible financial inclusion,SMEs Finance,Regulators/Standard setters,Financial literacy & consumer protection,Market & payment systems,4,Agenda:,#1,Financial Inclusion: a Global Agenda,#3,Enhancing Inclusion through Islamic Finance,#2,Financial Inclusion as National Agenda: Indonesian c
11、ase,Access to financing,Source : Improving Access to Financial Services in Indonesia, The World Bank & Bank Indonesia, 2010,Large portion of population still financially excluded to formal financial services.,6,Facts on Financial Inclusion: Indonesian Case,The informal sector plays a significant rol
12、e in serving Indonesians on the lending side. Only 17% borrow from banks. Creditworthiness is the most significant reason why people do not borrow.,46,7% use bank saving acc. and only 41% within this number have their own saving acc. About 31,9% of the population do not save. The main reasons for no
13、t saving is have no sufficient money and job.,Main reasons:,Saving,(49,9%),Only 16% informal workers are well literate; About half of them use banking products.,National Survey on Financial Literacy,Segments: Informal workers & MSMEs,Source: OJK, 2013,Source : IFSA, 2013-2014,Facts on Financial Incl
14、usion: An Update,Most MSMEs have lower than 4% of financial asset in their balance; Access to the financial products also relatively low (saving:62%, insurance:19%, credit:18%, pension fund:6%).,7,Economic Growth,The Significance of Micro-Small &Medium Enterprises: case of Indonesia,Financial Servic
15、es Providers,Population Segments,8,Source: IFSA, Ministry of Cooperatives & SMEs 2012,2,1,National Strategy on Financial Literacy,National Strategy on Financial Inclusion,Product Transparency Dispute mediation Fin Services Market of Conduct,No-Frill Saving Acc (TabunganKu) Branchless banking Land Ow
16、nership Legalization,Multilicencing Start-up Credit,Schools, Workers & Households Campaign & Awareness Programs,Financial Identity Number (FIN) Credit Rating,Programs,Social Safety Net ProgramsPublic Health ServicesPoors Direct Financing,9,The National Strategy - Indonesia,Strategy,The National Stra
17、tegy - Indonesia,Education program in 24 cities,Issue education materials, publication (magazine). Operate financial literacy car MSMEs preference survey,Cooperate with Minister of Cooperatives and SMEs, Fisherman/Farmers Community, and relevant NGO.,10,2,1,National Strategy on Financial Literacy,Na
18、tional Strategy on Financial Inclusion,Agenda:,#1,Financial Inclusion: a Global Agenda,#3,Enhancing Inclusion through Islamic Finance,#2,Financial Inclusion as National Agenda: Indonesian case,Islamic Finance and Financial Inclusion,Financial inclusion helps build domestic savings & stimulate busine
19、ss /entrepreneurial activity, with cummulative effect of lower economic inequality and more sustain growth. The issue of a just and egalitarian economic and social structure is central to Islamic economic. Islamic finance address this exclusion problem by providing instruments to enhance access to f
20、inance and to ensure redistribution of wealth in a society*). Islamic financial inclusion would also address the issue of non-access to formal financial services of those who do not want to use interest based conventional system due to religious consideration. Target of Islamic Financial Inclusion p
21、rogram: disconnected person either due to economic reasons or social/religious reasons, as well as micro-small businesses.,12,*) Mohieldin et.al.; The Role of Islamic Finance in Enhancing Financial Inclusion in OIC Countries; 2011,13,Integrated Islamic Financial System to Support Inclusion,Poorest o
22、f the Poor,Indonesian Islamic financial system may provides wide spectrum of services, yet enhancing financial inclusion requires more integration of services, as well as infrastructure & regulatory improvement.,Regulatory Environment,Product Development,Enhance necessary regulations i.e. introduce
23、branchless services, improves licensing (office, product), develop regulations for institutions offerring Islamic micro-financial services. Engage in inclusion related studies i.e. survey on financial literacy.,Develop Islamic inclusive products i.e. basic saving account (e.g. student account) & mic
24、ro-financing/takaful schemes (e.g. complement scheme to governments direct financing/safety net program), together with industry players.,Design financial education program for students which also support promotion of various Islamic inclusive products. Develop campaign program to promote access to
25、Islamic financial services, supported by industry players.,Collaborate with third parties or private sector in increasing delivery of financial services and particularly in integrating with services provided by Islamic social sector (zakah, infaq, awqaf).,Current Strategy to Enhance Financial Inclus
26、ion Through Islamic Finance,Education & Campaign,Collaboration with Stakeholder,14,Directions to Enhance Financial Inclusion Through Islamic Finance,Authorities to consider enhancing current strategy with several initiatives: Regulatory incentives: consider incentives on prudential regulation, level
27、 playing field between financial services providers & development of infrastructures in areas with limited access, as well as fiscal incentive for financial inclusion schemes. Authority also needs to participate in studies on financial behavior of targeted population, accesibility of financial servi
28、ces & existence of social capital to support more inclusion. Product development: consider long term asset development scheme for children, develop combined schemes (saving, equity, financing, insurance, social) and digitally delivered products for different segments (youth, women, migrant workers).
29、 Collaborative efforts: development of shared information services between Islamic financial sectors and Islamic social sectors, encourage private participation e.g. through participation in financial education, provision of social fund, or partnership/guarantees to SMEs, and build links and partner
30、ship with relevant international bodies. Campaign program: designated program for person excluded due to religious reasons e.g. collaborate with ulama and Islamic community/social organisations,15,End of Presentation Thank You Terima Kasih,1,Laku Pandai (Branchless Banking),Basic Saving Account,Micr
31、o Credit,Micro Insurance,Simple feature and administration. Easy to access. Economical (Start from IDR5,000) Fast claim settlement and payment.,Not more than 1 year, or based on debtors business cycle Maks IDR20Million Collateral - Not Necessary,Free adm fee No minimum account limit No minimum depos
32、it Earn interest/profit sharing Other characteristics,2,Micro Mutual Fund,Series of Investment Start from IDR100,000 Without Tax ID/Number (NPWP) Fast claim settlement and payment.,3,17,Financial Inclusion Programs: Indonesian Case,Key features of branchless product introduced by OJK and Financial Services Industry,
