The Influencing Factor of Financial Inclusion Development: Indonesia Factors Analysis

• Main Authors: Mohammed Muneer'deen, Olodo Al-Shafi'i, Abdulsoma, Thoarlim, Bedjo, Santoso, Bomber Joko, Setyo Utomo
• Format: Conference or Workshop Item
• Language: English
• Published: 2017
• Subjects: HG Finance
• Online Access: http://eprints.unisza.edu.my/1105/1/FH03-FKI-18-12644.pdf; http://eprints.unisza.edu.my/1105/
• Institution: Universiti Sultan Zainal Abidin

The aim of the study is to discover factors influencing financial inclusion implementation in Indonesia for realizing justice and welfare. For this purpose, the study conducted a survey involving 200 stakeholders, such as scholars, academicians, government servants, public leaders, and NGOs, who are concerned with financial inclusion development, through questionnaires. A hundred respondents were considered as qualified data, and the data were analyzed using SPSS via frequency analysis, factor analysis, reliability test and descriptive analysis. From factor analysis it was found that there are five factors, namely institutions and infrastructures (X1), government concern and policy (X2), regulations, cultures and values (X3), financial products and services (X4), and natural barriers (X5), influencing financial development in Indonesia. Descriptive analysis shows that government concern and policy is the most influential factor, this was followed by regulations, cultures and values, natural barriers, financial products and services, and institutions and Infrastructures. This study stands to benefit the stakeholders and/or any party involved in the financial inclusion development. This study reveals that the role of government concern is very crucial and central, and that regulations, cultures and values support the implementation. Future research is needed to build a model for the relation among founded variables, by enhancing number of samples, scope, area, and location.