Financial inclusion remains one of Indonesia’s pressing challenges. Recent data from the Indonesia Deposit Insurance Corporation (LPS) reveals that millions of citizens of productive age still do not own a bank account. This gap underscores the need for stronger efforts to expand access to financial services and integrate more people into the formal economy.
Key Facts & Background
Unbanked Population:
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- As of late 2025, 15.3 million Indonesians of productive age remain without a bank account.
- This figure highlights persistent barriers to financial inclusion despite rapid growth in digital banking.
National Context:
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- Indonesia has a population of over 270 million, with a large share in productive age groups.
- Financial inclusion is a government priority, tied to economic growth, poverty reduction, and digital transformation.
Challenges Identified:
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- Limited access to banking infrastructure in rural and remote areas.
- Low levels of financial literacy among segments of the population.
- Cultural and behavioral factors, including reliance on cash transactions.
- Concerns over fees, trust in institutions, and perceived complexity of banking services.
Policy and Institutional Efforts:
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- LPS continues to promote deposit insurance awareness to build trust in the banking system.
- Government initiatives include digital banking expansion, fintech partnerships, and simplified account opening procedures.
- Programs aim to integrate unbanked citizens into the formal financial system, supporting broader economic resilience.
Strategic Insights
The persistence of 15.3 million unbanked individuals in Indonesia illustrates the structural challenges of achieving full financial inclusion. While digital banking and fintech platforms have expanded rapidly, they have not yet bridged the gap for all demographics, particularly in rural and lower-income communities. The lack of access to formal financial services limits opportunities for savings, credit, and insurance, which in turn constrains economic mobility and resilience. Addressing this issue requires not only infrastructure investment but also targeted education and outreach to build trust and familiarity with financial products.
At a broader level, financial inclusion is directly tied to Indonesia’s long-term economic strategy. Integrating more citizens into the banking system strengthens monetary policy transmission, expands the tax base, and supports sustainable growth. It also enhances social protection by enabling direct transfers and digital payment systems. If Indonesia succeeds in reducing the unbanked population, it could unlock significant economic potential while reinforcing stability in the financial sector. The challenge will be ensuring that inclusion efforts are equitable, affordable, and adaptable to diverse local contexts, making financial services truly accessible to all.