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

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End of Presentation