New Delhi: The Asian Development Bank (ADB) approved a $500 million loan to support financial inclusion in Indonesia, with a focus on expanding access to financial services for vulnerable groups, particularly micro, small, and medium-sized enterprises (MSMEs), women, youth, and rural populations. The loan will support the third subprogram of the Promoting Innovative Financial Inclusion Program, an ADB release stated.
The program has three key reform areas: enhancing financial inclusion infrastructure, improving access to financial services for marginalized groups, and leveraging technology to strengthen consumer protection frameworks, the release read. The program is expected to further financial inclusion in Indonesia, including in remote regions, through the use of digital technology. This program builds on ADB’s support since 2020 and addresses new challenges, including climate change impacts on excluded populations to enhance financial health and resiliency.
ADB Country Director for Indonesia Jiro Tominaga said, “ADB is proud to support Indonesia’s commitment to increase financial inclusion through this program. By combining digital innovation with targeted support for vulnerable groups, this initiative will help create a more resilient and inclusive financial sector. ADB is committed to supporting Indonesia’s journey toward universal financial access.”
The program will implement key initiatives such as expanding the digital finance ecosystem, implementing Bank Indonesia’s Payment System Blueprint 2025, improving regional access to finance, supporting MSMEs in eastern Indonesia, and expanding women’s access to digital finance, added the release.