Indonesia: OJK issues regulation to improve financial literacy, inclusion

| 27 Mar 2023

The Financial Services Authority (OJK) is seeking to improve financial literacy and inclusion by issuing an amended regulation for consumers and the public.

Regulation (POJK) No. 3 of 2023 on financial literacy and inclusion improvement in the financial services sector aims to strengthen the synergy between the government and financial service business actors (PUJK) in carrying out activities to improve financial literacy and inclusion.

"Improvement of stipulation within POJK No. 3 of 2023 is intended to support the government's target of reaching financial inclusion index of 90% by 2024 and OJK's programme to improve financial literacy," Mr Aman Santosa, Head of the OJK’s financial literacy, inclusion, and communication department said recently.

The new regulation will also accommodate the dynamic development of information technology and increase the number of financial literacy and inclusion activities by optimising the roles of businesspersons. 

It will also accommodate the impact of financial service sector development with the emergence of new businesspersons and improve the utilisation of the financial education learning management system. 

Meanwhile, the activities to improve financial literacy are expected to make people more cautious in choosing and utilising financial service products and services. 

This also needs to be followed by improving financial inclusion by easing people's access to financial products. 

POJK No. 3 of 2023 will seek to strengthen financial inclusion and literacy activities, for instance, by involving new businesspersons who emerge as a result of financial service sector development in improving financial literacy and inclusion. 

Through the new regulation, monitoring to protect consumers will also be bolstered by mandating businesspersons to deliver a report on their financial literacy and inclusion activity plan and its realisation to related parties.

The stipulation concerning the management of activities to improve financial literacy and inclusion by financial service institutions has also been strengthened. 

Moreover, the penalty on financial service institutions that violate the established regulation has also been made more stringent through the regulation, Mr Aman said.

The new regulation is an amendment of POJK No. 76/POJK.07/2016, reported Antara.