FINANCIAL EDUCATION IN INDONESIA
Developing Financial Education in Schools
to Increase Saving Culture among Students
Regional Seminar on Emerging Trends in Financial Education: Financial Education in BRIICS
Presented by:
Member of Board Commissioners in Financial Education and Consumer Protection, IFSA
Rio de Janeiro I December, 9 2016
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Financial Education in Schools 2
The National Strategy 1
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Collaboration 4
Financial Inclusion in Schools
3 The National Strategy The IFSA - Regulator with the Clear Mandate in Financial Education & Consumer Protection
Mission 1
Mission 2
Mission 3
Capable of protecting the interests of consumers
and the society
Otoritas Jasa Keuangan (OJK) Indonesia Financial Services Authority
OJK is authorized to take necessary actions to prevent consumers and the public from harms, which include providing information and educating the public ....
Financial Inclusion
Financial Literacy
Consumer Protection
The Trilogy of Policy Instruments
4 4 The National Strategy The Trilogy of Policy Instruments
National Strategy on Financial Literacy
National Strategy on Financial Inclusion
National Strategy on Consumer Protection
Launched by the President on Nov, 19, 2013
Launched by the President on Nov, 18, 2016 (revised version)
Education and National Campaign
Strengthening the Infrastructure
Development of Products and Services
Financial Education
Public Property Rights
Financial Service in Government Sector
Intermediation and Distribution Channels
Consumer Protection
Presidencial Decree on Sept, 1 2016
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On progress
One of the Priority Target
STUDENT
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Financial Education in Schools 2
The National Strategy 1
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Collaboration 4
Financial Inclusion in Schools
6 Financial Education in Schools The Importance of financial education in schools
There are endorsement from G20 leaders which underline the importance of financial education for student. In Indonesia, with 20% population, student (elementary to senior high school) is a critical economic players. Financial education for youth become increasingly important. In addition, Indonesia student experience low financial inclusion.
Indonesian Youth
Source: National Statistics Bureau, 2015; OJK, 2013
27% 68 million
from 255 million citizen
Financial Literacy and Financial Inclusion
There are 28% well literate student compare to 21% for non student. However, student inclusion level is well below the non student groups.
Indonesian Student
20% 51,9 million
from 255 million citizen
7 Financial Education in Schools Collaboration and Development of Financial Education
OJK develop Financial Education Materials collaborate with several institutions (Financial Education Task Force), for Senior High School, Junior High School, Elementary School and University
for pedagogical (the method and
practice of teaching) and conformity with the national curriculum
Ministries Academicians and Schools Teachers
Financial Industry Association and Financial Institutions
for pedagogical and financial theory
for financial practices
Banking Capital Market Insurace
Finance Companies Pension Fund Pawnshop
MoU with Ministry of Education - 25/10/2013
MoU with Ministry of Religious Affairs - 8/9/2015
Public Schools Private Schools
Islamic Schools Religious Schools
Collaboration with Ministry of Higher Education and Research
University
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8 8 Financial Education in Schools Financial Education Content – Senior High Schools
Class X (Senior High)
Launched at July, 14 2014
Trial on 1.270 Schools
Already Implemented on 2016
http://sikapiuangmu.ojk.go.id/FrontEnd/CMS/DetailMateri/107
Student and Teacher Handbook
Senior High Schools
Launched by OJK Commisioners
Based on Minister of Education and Culture Decree Number 24 year 2016 about Core Competence and Basic Competence in 2013 Curriculum on Primary And Secondary Education
9 9 9 Financial Education in Schools Financial Education Content – Junior High Schools
Class 7, 8 and 9 (Junior High)
Launched at Feb, 23 2015
Trial on 1.521 Schools
Implement on 2017
Launched by Minister of Education and OJK Chairman
http://sikapiuangmu.ojk.go.id/FrontEnd/CMS/DetailMateri/108
Student and Teacher Handbook
Junior High Schools
1 Financial Institutions
3 Indonesia FSA (OJK)
2 Financial Products and Services
Banking Finance Companies
Insurance
Pawnshop
Capital Market Pension Fund Syariah Finance
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Class IV and V
Launched at Nov, 27 2015
Trial on 1.500 Schools
Implement on 2017
Equip with Games
http://sikapiuangmu.ojk.go.id/FrontEnd/CMS/DetailMateri/109
Financial Education Games
Student and Teacher Handbook
Financial Planning Financial Product and
Services
Elementary Schools
Financial Education in Schools Financial Education Content – Elementary Schools
Launched by OJK Commisioners and Ministry of Education
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Economic Students
Financial Education in Schools Financial Education Content – University
Launched at Aug, 23 2016
Trial on 24 universities
Launched by OJK Chairman and Ministry of Higher
Education and Research
University
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IFSA
Banking
Capital Market
Insurance
Finance Companies
Pension Fund
Other FI
Syariah Finance
Financial Planning
12 Financial Education in Schools Financial Education Content – e Book Learning
OJK has provided financial literacy and education materials through a minisite named sikapiuangmu.ojk.go.id. These web based materials will be transformed into more animated and attracting materials, we called it e - Book Project in 2017.
The materials which will be developed into e-book for : Elementary School, Junior High School, and Senior High School. Those e-books will be readable everywhere by students with nowaday computer, handheld/ tools, tablet, and even smartphone.
With 88.1 million people or 34%
of the population is actively using the internet, e-book project will be beneficial.
13 Financial Education in Schools Financial Education Infrastructure – Training of Trainers (ToT)
ToT for 259 teachers
ToT for 300 teachers
ToT for 378 teachers
Training and other support for the teachers will support financial education in schools. Teachers are encouraged and supported to incorporate financial education into their teaching programmes ...
Gathered from school teachers chosen as pilot
project, representing Indonesia province
ToT conducted by financial education task force consisting of the FSA, ministries and financial
instituions (associations)
Class X (Senior High)
Class 7, 8 and 9 (Junior High)
Class IV and V (Elementary)
University Student
ToT for 28 Lectures
14 Financial Education in Schools Financial Education Infrastructure - Monitoring
Evaluation is key to improving the overall effectiveness of the programme and the accountabiliy of the stakholders involved...
Evaluation through Schools Visit
Evaluation through Questionnaires
Evaluation through Focus Group Discussion
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Overall evaluation by the Relevant Ministries and OJK after 1-year pilot project. After being fixed, it can be enacted as part of formal curriculum.
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Financial Education in Schools 2
The National Strategy 1
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Collaboration 4
Financial Inclusion in Schools
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Student Saving Account
We also develop financial products and services that best suit the needs of the student and young population..
Financial Inclusion in Schools Student Saving Account
The program is fully dedicated to support financial inclusion with the targeted segment is School Children from Early Childhood Education (PAUD) to Senior High School (SMA).
Bank: 125 Bank
Num of Account: 2.506.605 account
Value : Rp520,7 M (USD40M)
Schools : 29,384 schools
SimPel used as G2P payment: Indonesia Smart Programme (Program Indonesia
Pintar/PIP)
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Financial Literacy
Financial Inclusion
Savings Culture
Asset Building
PURPOSES
UPDATE (Sept 2016)
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Financial Education in Schools 2
The National Strategy 1
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Collaboration 4
Financial Inclusion in Schools
18 Collaboration Education Program from Financial Industries
Financial Education Program from Financial Industries
Education target mostly Students..
But, mostly done in Java Island...
Education program mostly focus on financial products and services...
19 Collaboration Example of Education Program from Financial Industries
“Yuk Nabung Saham” is a persuasive campaign for Indonesian Society to invest regularly in capital market
Public Education Roadshow
University & Community Development
Product Development: Auto Investment
Indonesia Stock
Exchanges
Banking Sector
Regional Bank - BJB Education for Elementary - BCA
Children Banker - Permata
20 Collaboration Example of Education Program from Financial Industries
Insurance Sector
Education for Senior High (Athlete) - Bringin Life
Education for Elementary - Allianz
Education for Poor Kids - ACA
Education for Kindergarten - ACA