Financial literacy in Indonesia

Abstract

With the implementation of its National Strategy on Financial Literacy, Indonesia has initiated a number of actions to improve financial literacy. Quick success, however, is hardly guaranteed. With a low initial financial literacy level, movement toward an economically literate society of financially active citizens is likely to be slow. Several factors may slow the progress of the fight against financial illiteracy. With the new school curriculum mandating less rather than more economics and personal finance coursework, graduates of the school system will likely be less prepared for the challenges of the economic and financial world into which they emerge. Efforts to educate the general population outside the school environment should improve the situation somewhat; however, attacking financial and economic illiteracy through youth education in a school context might substantially strengthen progress toward a financially literate society. Progress in the war on financial illiteracy in Indonesia is evident. With continued diligence by the responsible agencies, the educational establishment and the private sector, the efforts to improve the personal finance knowledge and behaviours should improve with time.