The Role of Financial Literacy in Reducing Poverty: Experience from Indonesia

Abstract

Poverty reduction is one of the successes of the government in implementing its policies or strategies. This study aims to determine the implementation of government strategies by increasing public knowledge, skills, and confidence in financial literacy as an effort made to encourage Indonesians to be better able to manage finances so that it will have an effect on increasing people's welfare which will affect reducing poverty as seen in minimum calorie intake below 1400 kcal per capita and poverty depth index. This study uses secondary data, which is examined with quantitative descriptive methods and data analysis using descriptive statistics. The level of financial literacy of the Indonesian people from time to time continues to increase. This indicates the level of knowledge, greater public capacity, and trust in financial institutions. This condition is expected to have implications for the poor who need capital to get out of their poverty cycle.