Makassar, February 21, 2017 — The Financial Services Authority (OJK) supports implementation of Presidential Regulation (PP) No. 82 of 2016 concerning National Strategy of Financial Inclusion, especially in relation to its first and fourth pillars on Financial Education and Financial Services in the Governmental Sector, respectively, in connection with distribution of non-cash social assistance.  

The initial distribution of the non-cash assistance will be carried out at the inauguration of Food Aid, Family Hope and Smart Indonesia programs, by the President of the Republic of Indonesia at the end of February 2017.

The OJK has taken the initiative to champion the non-cash assistance program by creating a synergy among ministries/agencies. It gave financial education to 204 participants who attended the event that was held in Makassar, on Tuesday. The participants included non-cash assistance distribution agents, program attendants, sub-district social welfare workers (TKSK), and Family Beneficiaries (KPM).  

"The non-cash social assistance program will be successful if the beneficiaries can manage the assistance well. Other than to cover basic needs, some of the assistance should also be set aside for savings," Kusumaningtuti S. Soetiono, OJK Commissioner for Consumer Education and Protection, said.

She said that they expected the financial education event to raise understanding among the social assistance distribution agents, program attendants, TKSK, and KPM, about financial management and different microfinance products such as basic savings accounts (BSA), gold savings, microinsurance products, and microcredit.

In addition, financial management skill is vital to people who had not been able to manage their money well. So later, they can use this skill to improve their own welfare.

In 2017, the OJK will hold 30 financial education events in 24 cities. Target participants for these events include instructors who give pre-departure briefing (PAP) to Indonesian migrant workers (TKI) and TKI candidates; social assistance distribution agents and attendants; communities in remote areas—near river banks—and border areas; teachers and lecturers; MSME; women; and local governments and counselors. Three educational methods will be used to deliver the course, including training of trainers, community education, and outreach programs.

Distribution agents, program attendants and TKSK play critical roles in channeling the social assistance, especially in providing education and support for the assistance beneficiaries. So these beneficiaries can optimize the assistance not only for satisfying their basic needs, but also for setting aside some of it for savings and other productive purposes.

These events also encourage the participants to become financial literacy and inclusion agents, who in turn will educate and support financial management implementation by family beneficiaries—a multiplier effect of the educational events.

Makassar was selected to host the financial education event based on the result of the 2016 National Survey on Financial Literacy and Inclusion that showed the city's financial literacy index stood at 28.36 percent, below the average national index that reached 29.66 percent.

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For more information:

Agus Sugiarto, Head of Financial Literacy and Inclusion Department

Tel: +62 21 2960 0000/ 1500655 E-mail: agus.sugiarto@ojk.go.id www.ojk.go.id