Bali: Literacy Insurance Program for Micro, Small, and Medium Enterprises (MSMEs) to Address Decrease in Financial Inclusion
The results of the 2024 National Survey on Financial Literacy and Inclusion conducted by the Financial Services Authority (OJK) show that the Financial Literacy Index of the Indonesian population has increased this year by 65.43%, compared to 49.68% in 2022. However, financial inclusion has decreased by 72.02% this year compared to 85.10% in 2022. These statistics indicate that there is still a need for attention and support in strengthening financial literacy and inclusion, including insurance, among various stakeholders.
Chief Human Resources Officer of Prudential Indonesia, Dewi Satriani, stated that efforts to enhance understanding of financial planning and insurance for MSME entrepreneurs in Indonesia align with the Gencarkan program (National Smart Financial Movement) initiated by OJK to instill financial literacy. This includes providing appropriate financial protection for the community, including MSME entrepreneurs, to support the growth of MSME businesses, thereby impacting the financial resilience of families and the future economic progress of Indonesia.
According to data from the Ministry of Cooperatives and SMEs of the Republic of Indonesia in 2024, the number of MSMEs in Indonesia has reached over 65 million units spread across various sectors, including culinary, fashion, handicrafts, and digital technology. By 2034, the number of MSMEs as drivers of the national economy is projected to increase to 83.3 million entrepreneurs. This projection highlights the opportunities for the development of Indonesian MSMEs to continue contributing to the national economy.
Furthermore, the Department of Cooperatives and SMEs recorded 57,456 MSMEs operating in all districts in Karangasem, Bali, across various sectors such as trade, industry, agriculture, non-agriculture, and various services. With such a large and diverse number of MSMEs in Indonesia from various sectors, Prudential Indonesia sees great potential for MSMEs to develop their businesses through proper financial management by providing literacy and financial inclusion education.
Prudential Indonesia is committed to contributing to sustainable protection for financially strong Indonesian communities. This includes increasing understanding of insurance literacy for Indonesian MSMEs to support the growth of their businesses. The hope is that MSMEs can become more economically empowered and manage their finances wisely, ultimately leading to financial resilience for their families in the future.
Golden Opportunity
Chairman of DAI, Yulius Bhayangkara, believes that collaboration with stakeholders in the financial industry is a golden opportunity to address challenges faced by society, both in MSMEs and the insurance industry. „I am optimistic that as public awareness of the importance of insurance increases, our economy will also become stronger. Insurance protection provides security and stability for individuals, families, and businesses,“ Yulius added.
In the future, this initiative is expected to reach and educate all layers of society on the importance of early financial planning with insurance protection. This initiative aims to catalyze the improvement of financial literacy and inclusion evenly so that the community, especially MSME entrepreneurs, can enhance their financial management skills in their businesses while understanding the importance of having protection for their ventures.
„By having a strong foundation in financial planning, including suitable protection products tailored to individual profiles, the Indonesian community can achieve prosperity for their current and future lives,“ Dewi concluded.
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