OJK Plans to Establish a Financial Literacy Blueprint

Fathan Qorib, Mahinda Arkyasa

The Financial Services Authority (OJK) is planning to draft a blue print on the financial literacy system with the aim of improving people’s understanding of financial institutions.

Agus Sugiarto, Director of the Financial Literacy Strategic Program at OJK, stated that hopefully, the blue print will enable people to manage their finances properly.

“The blue print will equip people with the knowledge, skills, and confidence to manage their own financial planning,” Agus said during a workshop for journalists held by OJK, in Tangerang, Tuesday (19/3).

He stated that a financial literacy system is essential, because nowadays, there are many Indonesians who do not understand how to invest in a secure manner.

“How can consumers know that a financial institution that offers investment products is a legal institution? We need to assume that Indonesians are not well-informed about financial services,” he said.

Before issuing such blueprint, OJK will conduct a survey in order to assess public’s awareness and knowledge on financial issues.

The survey will be conducted in 20 provinces with 7630 samples divided into certain groups—high-income, low-income, municipalities, and villages. Result of the survey will be used by OJK to create a firm financial literacy system.

Similar system has been adopted in some countries, such as Malaysia and India. This system helps the public to obtain more information on financial services.

Other than that, this system will also encourage financial institution to create low-cost products that can be accessed by low-income citizens.

Agus, however, did not know how the system will be stipulated, whether it will be a regulation or a guidelines/recommendation.

“It is ideal if it can be a policy,” Agus asserted.

(jt/hot)

Fathan Qorib, Mahinda Arkyasa

The Financial Services Authority (OJK) is planning to draft a blue print on the financial literacy system with the aim of improving people’s understanding of financial institutions.

Agus Sugiarto, Director of the Financial Literacy Strategic Program at OJK, stated that hopefully, the blue print will enable people to manage their finances properly.

“The blue print will equip people with the knowledge, skills, and confidence to manage their own financial planning,” Agus said during a workshop for journalists held by OJK, in Tangerang, Tuesday (19/3).

He stated that a financial literacy system is essential, because nowadays, there are many Indonesians who do not understand how to invest in a secure manner.

“How can consumers know that a financial institution that offers investment products is a legal institution? We need to assume that Indonesians are not well-informed about financial services,” he said.

Before issuing such blueprint, OJK will conduct a survey in order to assess public’s awareness and knowledge on financial issues.

The survey will be conducted in 20 provinces with 7630 samples divided into certain groups—high-income, low-income, municipalities, and villages. Result of the survey will be used by OJK to create a firm financial literacy system.

Similar system has been adopted in some countries, such as Malaysia and India. This system helps the public to obtain more information on financial services.

Other than that, this system will also encourage financial institution to create low-cost products that can be accessed by low-income citizens.

Agus, however, did not know how the system will be stipulated, whether it will be a regulation or a guidelines/recommendation.

“It is ideal if it can be a policy,” Agus asserted.

(jt/hot)

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