Analysis: 200 million accounts: Financial inclusion or fiscal excess?
The government’s plan to spend an estimated Rp 11 trillion (US$619 million) opening bank accounts for more than 200 million Indonesians aged 17 and above is difficult to justify when fiscal space is already tight and financial inclusion has reached 93.61 percent. If the objective is to reach the unbanked or improve the delivery of social assistance, there is little reason to give new accounts to…
The Indonesian government's plan to open bank accounts for over 200 million adults is questionable given fiscal constraints and near-complete financial inclusion. With 93.61% of Indonesians aged 17 and above already banked, extending accounts to nearly every adult is inefficient. Public funds should target those genuinely in need rather than automatic account opening via population identification numbers.
The program's implementation involves Bank Rakyat Indonesia and Bank Syariah Indonesia, utilizing QRIS to enable account opening without in-person visits. However, the Rp 11 trillion budget remains an estimate without a definitive fiscal year. The 2026 National Survey of Financial Literacy and Inclusion shows financial literacy at 69.57% and inclusion at 93.61%, exceeding the 2029 target.
Coordinating Minister Airlangga Hartarto highlighted Indonesia's financial literacy index favorably against the OECD benchmark of 63%. Yet, 46.5 million Indonesians remain unbanked, with 15.3 million of working age, far below the target. Providing Rp 50,000 to all 46.5 million unbanked would cost only Rp 2.33 trillion, about a fifth of the program's estimate.
The 200 million estimate seems inflated, focusing on potential recipients instead of those truly needing accounts. Strengthening data systems, national identification records, and cross-agency integration could better address social-assistance delivery.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
