Akademi Ilmuwan Muda Indonesia hosted the FKP seminars in March 2018. On 15 March 2018, Firman Witoelar (SurveyMeter, ALMI) presented a study conducted with Arya Gaduh (University of Arkansas) and Teguh Yudo Wicaksono (Palladium) on financial inclusion. His presentation focused on observing how behavior affects economics decision, specifically savings and borrowing decision. Firman highlighted the lack of financial inclusiveness in Indonesia which motivated the study. The study intended to gain a deeper understanding on which groups need to be financially included, and also to find out the main reasons for exclusion from the current financial system. The study uses qualitative (in-depth interview and FGDs) and quantitative approaches (micro-econometric analysis, household survey, field experiments), this study focusds on behavioral biases.

The findings of the study are as follows. First, it shows that basic infrastructure and regulation time-lag have been major obstacles in implementing financial inclusion programs, as concluded from FGDs and interviews. Second, the study found that behavioral biases such as risk aversion and time preference have influenced individual decision to access financial services. From field experiments and surveys, some controlling characters such as religiosity and trust between individuals plays bigger role in affecting demand for savings and loans.

In the last part of his presentation, Firman emphasized that it is important for policy intervention to focus on addressing the knowledge gaps and perception in order to increase financial inclusion on demand side. Please refer to the video and slides for the complete presentation.

For the complete presentation and Q&A session, please refer to the videos and materials provided.