SOCIO-ECONOMIC, INFORMATION AND COMMUNICATION TECHNOLOGY, AND BANKING PERFORMANCE FOR FINANCIAL INCLUSION INDEX IN INDONESIA

• Main Author: MADIRA 29116487, DITASA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/26725
• Institution: Institut Teknologi Bandung

Indonesia has 34 provinces spread across several separate islands, which means Indonesia has much diversity in its community. It is made difficult for the government to regulate and enhance overall economic growth, mainly to provide financial services. For this reason, the government created a national financial inclusion strategy to fulfill these objectives by building Five pillars and Three strategic foundations. Financial Inclusion Index of Indonesia in 2013 is 59,74% then in 2016 has increased to 67.8% and in 2017 to be 69%. However, the target of the Indonesian President, Joko Widodo, is to improve the 75% Financial Inclusion Index in 2019. <br /> <br /> In this study, the author analyze the factors that affect the Financial Inclusion Index with the aim of providing recommendations for government to increase Financial Inclusion Index to be 75% in 2019. <br /> <br /> Variables used in this study include socio-economic conditions, ICT, and Banking Performance. The method used was descriptive and verification analysis by panel regression analysis. <br /> <br /> The results are obtained that the variables that influence the Financial Inclusion Index in Indonesia are Unemployment rate variables, Internet variables, and Non-Performing Loans. The magnitude of the effect of all independent variables on the dependent variable simultaneously is 64.07%. <br /> <br />