The role of msme growth as a mediation variable in financial inclusion: Evidence from indonesia

Abstract

Financial inclusion as the goal of the countries in the world has been considered important by international policymakers even though every country has its specific development models. The MSME sector can encourage economic growth and create jobs so that the MSME sector can stabilize the economy. The development of MSMEs in Indonesia also shows growth every year. Based on these data, the government must continue to increase the growth of MSMEs, because, with the increase of MSMEs, the number of workers will also increase. This research is quantitative, meaningful research that describes conditions of financial inclusion in Central Java and Indonesia. The data in this study used secondary data. Secondary data obtained were from supporting data through literature studies, journals, mass media articles, and books related to this research topic. The purposes of this study are to map the growth of MSME's Supporting Model in Financial Inclusion and determine the level of financial inclusion in the regional scale of Central Java by developing a model at the level of financial inclusion in Indonesia for a national scale.