JAKARTA: The global effort to reduce poverty through financial inclusion should be carried out by all countries—not just developing ones.
"This must become a global movement, and there is a global responsibility to reduce poverty. It should not be left solely to developing countries," said Coordinating Minister for Economic Affairs Hatta Rajasa in his office today.
He made this statement while answering questions at the opening of the global policy forum of the Alliance for Financial Inclusion (AFI) in Badung, Bali, earlier today. Hatta attended the event and returned to Jakarta this afternoon.
Financial inclusion, or access to finance, is a policy aimed at developing new methods to meet the needs of the poor and involve them in the financial system.
The second annual AFI meeting is taking place from today until September 29, 2010, under the theme "Taking Financial Inclusion to the Next Level." The event brings together approximately 130 policymakers from 50 developing countries and around 60 other strategic government partners.
"Essentially, it's about how the entire population can access the banking system—not just for saving, but also to be able to borrow," he explained.
In Indonesia, Hatta added, the financial inclusion movement is already being practiced through programs such as KUR (People’s Business Credit), Rural Savings (Simpedes), and other rural-based credit schemes. He noted that KUR is a form of capital inclusion because loans are provided to borrowers who are deemed unbankable by conventional banking standards.
Loans are given to communities with businesses that do not meet the usual banking requirements, yet the government is willing to take the risk by guaranteeing up to Rp2 trillion through Askrindo and Jamkrindo.
(source: bisnis.com)