Sulawesi Has the Highest Number of Digital Financial Service Agents

Indonesia's financial inclusion rate remains relatively low. In 2019, 51% of the adult population (95 million) did not have a bank account. One solution is through digital financial services (DFS).

DFS refers to payment and financial service activities utilizing digital technology such as mobile phones or the web, facilitated by third parties (agents). DFS agents can be individuals or members of the general public who are not bank employees and have received official permission to operate as branches of digital financial institutions.

According to 2020 Bank Indonesia data, the ratio or number of DFS agents per 100,000 adults is highest in Sulawesi. The island has 365 agents per 100,000 adults. This is followed by Java with 313 agents, Kalimantan with 300 agents, Bali and Nusa Tenggara with 285 agents, Sumatra with 278 agents, and Maluku and Papua with 248 agents.

(Read More: Banking Services Have Yet to Reach All Regions)

Riswinandi, Executive Head of Supervision for Non-Bank Financial Institutions at the Financial Services Authority (OJK), stated that Indonesia's financial inclusion rate remains relatively low, particularly outside Java. Furthermore, Indonesia's Financial Inclusion Index in 2019 was also below that of other ASEAN countries, at only 76%, compared to Thailand at 82%, Malaysia at 85%, and Singapore at 98%.

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