REGIONAL AND ACCESSIBILITY ANALYSIS OF THE BANKING SYSTEM AND THEIR IMPACTS TOWARD REGIONAL FINANCIAL INCLUSION IN INDONESIA

  • Irma Asyatun Brawijaya University
Keywords: Financial Inclusion, Financil Inclusion Index, Banking Accessibility

Abstract

Financial inclusion has been widely discussed in the global level. The increasedengagement in discussion of financial inclusion is inseparable from the implementationof policy priorities which are seemingly leaning towards improving financial inclusionto tackle poverty and growing inequality in a country. This article seeks to identifywhether regional variables (income level, educational level, income inequality,population size and banking accessibility) are significant on influencing financialinclusion in Indonesia. This study proxied financial inclusion level by measuring thefinancial inclusion index using the method developed by Sarma in 2012. The researchis conducted for 3 years, between 2012-2015. Employing the panel data estimationmethod, the results indicate that income level, educational level, and bankingaccessibility possess significant impact on financial inclusion in regional Indonesia.Keywords: Financial Inclusion; Financial Inclusion Index; Banking Accessibility.JEL Classifications: G10; G20; G21.

References

ADBI-Institute. (2014). Financial Inclusion in Asia: Country Surveys. Asian Development Bank Institute. Retrieved November 23, 2017, from www.Adbi.org Allen, Franklin, Demirguc-Kunt,A., L., Klapper, Maria Soledad Martinez Peria. (2016). The Fondation of Financial Inclusion; Understanding Ownership and Use of Formal Account. Journal Financial Intermediation, 27, 1-30. Retrieved October 18, 2017, from www.elsevier.com/locate/jfi Bank Indonesia. (2014). Booklet Keuangan Inklusif. Departemen Pengembangan Akses Keuangan dan UMKM. Retrieved August 15, 2017, from www.bi.go.id Chauvet, Lisa & Jacolin, Luc. (2017). Financial Inclusion, Bank Consentration, and Firm Performance. World Development, 97, 1-13. Retrieved October 18, 2017, from www.Elsevier.Com/Locate/Worlddev Chakravarty,Satya R., & Pal, Rupayan. (2013). Financial Inclusion in India : An Axiomatic Approach. Journal of Policy Modeling, 35, 813-837. Retrieved October 18, 2017, from www.Elsevier.Com/Locate/JpmDemirgüç-Kunt, A., Córdova,Ernesto L., María Soledad & Martínez Pería, Christopher Woodruff. (2011). Remittances and Banking Sector Breadth and Depth: Evidence from Mexico. Journal of Development Economics,95, 229–241. Retrieved October 15, 2017, from www.elsevier.com/locate/devec Demirgüç-Kunt, A., & Klapper, L. (2013). Measuring Financial Inclusion: Explaining Variation in Use of Financial Services Across and Within Countries. Brookings Paper on Economic Activity, 44, 1 (Spring), 279-340. Retrieved October 18, 2017, from https://www.brookings.edu/wpcontent/uploads/2016/07/2013a_klapper.pdf Fungacova, Zuzana & Weill, Laurent. (2015). Understanding Financial Inclusion in China. Journal China Economic Review, 34, 196-206. Retrieved October 19, 2017, from http://Dx.Doi.Org/10/1016/J,Chieco.2014.12.004Gabriella, Grace L., & Goeltom, Miranda S. (2013). Pengaruh Pembangunan Keuangan Perbankan dan Akses Keuangan Perbankan Terhadap Kemiskinan di Indonesia. Retrieved November 22, 2017, from http://lib.ui.ac.id/naskahringkas/2015-08/S44038-Laura%20Grace%20Gabriella Hannig, A., & S. Jansen. (2010). Financial Inclusion and Financial Stability: Current policy Issues. Adbi Working Paper 259. Tokyo: Asian Development Bank Institute. Retrieved October 18, 2017, from http://Www.Adbi.Org/WorkingPaper/2010/12/21/4272.Financial.Inclusion.Stability.Policy.Issues/
Leyshon, A., & Thrift, N. (1995). Geographies of Financial Exclusion: Financial Abandonment in Britain and the United State. Trans Inst. Br. Geogr, 20(3) , 312-341.Otoritas Jasa Keuangan. (2016). Statistik Perbankan Indonesia. Retrieved November 21, 2017, from www.ojk.go.id Otoritas Jasa Keuangan. Data Perkembangan Indeks Inklusi Keuangan di Indonesia Tahun 2016. Retrieved November 11, 2017, from http://www.ojk.go.id/id/berita-dan-kegiatan/siaran-pers Park,Cyn-Young & Mercado, Rogelio Jr. V. (2015). Financial Inclusion, Poverty, and Income Inequality in Developing Asia. Adb Economics Working Paper Series 426. Retrieved October 18, 2017, from www.adb.org. Sarma, M. (2008). Index of Financial Inclusion. Indian Council for Research on International EconomicRelations Working Paper No. 215. Retrieved October 9, 2017, from icrier.org/pdf/Mandira%20Sarma-Paper Sarma, Mandira and Pais, Jesim. (2011). Financial Inclusion and Development : A Cross Country Analysis. Journal of international development,23, 613-628. Retrieved October 9, 2017, from www.researchgate.net/Sarma, M. (2012). Index of Financial Inclusion – A Measure of Financial Sector Inclusiveness. Berlin Working Papers on Money, Finance, Trade and Development. Working paper No. 07/2012. Retrieved October 9, 2017, from finance-and-trade.htw-berlin.deWahyudi, S., Tri. (2016). Konsep dan Penerapan Ekonometrika Menggunakan Eviws. Raja Grafindo Persada; Jakarta. World Bank. (2008). Finance for all: Policies and Pitfalls in Expanding Access. Policy Research Report, World Bank Washington DC. Retrieved October 18, 2017, from www.worldbank.org.id World Bank. (2014). Global Financial Development Report ; Financial Inclusion. Green Press Intiative, Washington Dc. Retrieved October 18, 2017, from www.worldbank.Org/Financialdevelopment.
Published
2019-02-09
How to Cite
Asyatun, I. (2019). REGIONAL AND ACCESSIBILITY ANALYSIS OF THE BANKING SYSTEM AND THEIR IMPACTS TOWARD REGIONAL FINANCIAL INCLUSION IN INDONESIA. Journal of Islamic Monetary Economics and Finance, 4(2), 311-332. https://doi.org/10.21098/jimf.v4i2.1015
Section
Articles