The Asian Development Bank (ADB) recently approved a 500 million USD policy-based loan to support the Indonesian Government’s efforts to expand financial access among micro, small, and medium-sized enterprises (MSMEs) and marginalised groups such as women and youth.

One hundred dollar notes are seen in this photo illustration (Source: AFP)

The loan is part of the Promoting Innovative Financial Inclusion Programme which aims at helping the government better target and track financial inclusion, improve the payments infrastructure, and strengthen the regulatory framework for digital financial services, data privacy, consumer protection, and financial literacy.

The programme will also help build a more inclusive financial services sector, which will reduce poverty and inequality and support Indonesia’s long-term sustainable development.

ADB’s programme supports the government’s goal of increasing the number of Indonesians using financial products or services offered by formal financial institutions to 90 percent by 2022, up from 76 percent in 2019.

ADB has been supporting financial inclusion in Indonesia through lending and technical assistance since 2002, when it helped develop the microfinance sector to expand access to finance for MSMEs.

Source: VNA