The Financial Inclusion and Its Impact on Society Welfare in Indonesia

Paidi Hidayat, Raina Linda Sari, Herfita Rizki Hasanah Gurning

2019

Abstract

This study aims to analyze the level of financial inclusion and its impact on the welfare of society in Indonesia using provincial data for 2015-2018. The method used is based on the dimensions of accessibility, availability, and use of financial services developed by Sarma (2012) to calculate the Index of Financial Inclusion (IFI) and the generalized least square (GLS) method for estimating panel data. The analysis shows that financial inclusion in Indonesia is determined by the dimensions of the use and availability of financial services, while the dimensions of accessibility have a relatively small proportion. Based on the financial inclusion index, there are 25 provinces included in the category of low financial inclusion, 8 provinces included in the medium category, and only DKI Jakarta Province included in the category of high financial inclusion. Meanwhile, the panel data estimation results show that the financial inclusion index has a positive and significant effect on the welfare of the Indonesian people, which is proxied by the human development index.

Paper Citation

in Harvard Style

Hidayat P., Sari R. and Hasanah Gurning H. (2019). The Financial Inclusion and Its Impact on Society Welfare in Indonesia. In Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC, ISBN 978-989-758-498-5, pages 531-536. DOI: 10.5220/0009314105310536

in Bibtex Style

@conference{ebic19,
author={Paidi Hidayat and Raina Linda Sari and Herfita Rizki Hasanah Gurning},
title={The Financial Inclusion and Its Impact on Society Welfare in Indonesia},
booktitle={Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,},
year={2019},
pages={531-536},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009314105310536},
isbn={978-989-758-498-5},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,
TI - The Financial Inclusion and Its Impact on Society Welfare in Indonesia
SN - 978-989-758-498-5
AU - Hidayat P.
AU - Sari R.
AU - Hasanah Gurning H.
PY - 2019
SP - 531
EP - 536
DO - 10.5220/0009314105310536