The International Labour Organization (ILO) reaffirmed its commitment to advancing financial inclusion in Indonesia to strengthen micro, small, and medium-sized enterprises (MSMEs), informal workers, and rural economies. Speaking at a media briefing in Jakarta, the ILO emphasized that connecting MSMEs and farmers to formal financial services enhances productivity, income stability, and enterprise resilience, while supporting the creation of decent jobs and the broader national agenda for sustainable economic growth.
Financial inclusion in Indonesia is being promoted through collaboration with government bodies and financial institutions, with a particular focus on digitalization. The Financial Services Authority (OJK) highlighted tools like the Alternative Credit Scoring (ACS) mechanism, which leverages digital records from e-commerce and mobile platforms to assess creditworthiness, even in the aftermath of asset losses due to disasters. OJK and the ILO have jointly developed programs such as the dairy value chain ecosystem, integrating Enterprise Resource Planning (ERP) systems with ACS to improve financing for smallholder farmers and stimulate regional economic development.
The Swiss State Secretariat for Economic Affairs (SECO) highlighted the successes of the PROMISE II IMPACT Project, which has expanded access to affordable financial services across key sectors in three provinces: dairy in West Java, seaweed in Sumba, and patchouli in Aceh. Through ILO-supported initiatives, including mobile loan applications, upgraded core banking systems, and loan origination systems, 6,000 MSMEs accessed financing totaling IDR 167 billion, while 3,610 MSMEs used savings and deposit services amounting to IDR 20 billion. These interventions have strengthened local financial institutions and value chain ecosystems, fostering broader economic opportunities.
Multi-stakeholder collaboration was identified as critical to the initiative’s success. SECO and ILO continue to assess and plan the next phase of financial inclusion efforts, while the Coordinating Ministry for Economic Affairs acknowledged the programs’ potential to be adopted through Regional Financial Access Acceleration Teams (TPAKD), ensuring continuity and integration into strategic local programs.
The ILO concluded that financial inclusion is a vital element for social and economic well-being. When financial services are aligned with the principles of decent work, they not only strengthen enterprise resilience but also enhance social protection and expand employment opportunities. The organization reaffirmed its ongoing commitment to collaborate with the government and financial institutions to promote a more equitable and sustainable labour market in Indonesia.
