Pidato pada Acara Los Cabos Financial Inclusion
PIDATO PRESIDEN REPUBLIK INDONESIA
LOS CABOS FINANCIAL INCLUSION
DI CONVENTION CENTER, SHERATON HACIENDA DEL MAR,
LOS CABOS, MEKSIKO
16 JUNI 2012
His Excellency, Mr. Felipe Calderon, President of Mexico,
His Excellency, Sebastian Echenique, President of Chile,
Her Royal Highness, Princess Maxima,
Ladies and Gentlemen,
It is an honor for me to be part of this important event. And, I wish to thank President Calderon for inviting me to this meeting.
Mr. President, you have indeed made a historic step, by adding a new way to the discussion of the Financial Inclusion agenda within the G20. I also wish to appreciate Princess Maxima for her commitment, dedication, and tireless work in promoting this noble cause.
Financial Inclusion is undoubtedly a critical matter. One important lesson that we can learn from the present global crisis is that financial sector has failed to function properly. In our experience during the Asian monetary crisis in 1998, the SME sector served as our back bone in preventing deeper multi dimensional crisis due to their resilience. It is proven among others by the relatively low level of non performance loans and by their contribution to job creation and poverty alleviation. Between 2007 and 2011, poverty level decreased from 16,6% to12,5% in Indonesia.
Today’s financial reality somewhat reminds us of this difficult time. There has been a serious disconnect between finance and real economy. Intermediation has been bottlenecked and work creation has been watered down. Disconnect also happens between financial sector reform and development agenda. Millions of people in the world remain distant from financial services. They suit us with a question: what modalities can be developed to make Financial Inclusion a global success?
Terming Financial Inclusion into action requires partnership and collaboration. There are countries that have succeeded in building inclusive financial system, but many other countries are still developing effective framework for Financial Inclusion. These realities offer us important lessons and experiences. Therefore, Indonesia fully supports Mexico’s initiative on the G20 Financial Inclusion Peer Learning Program.
Under this scheme, cooperative learning will enhance the value of member-to-member’s interaction. It will also result in many useful learning outcomes. Thus, through sharing and learning experiences, the process to make our financial system more inclusive can be accelerated. I believe that, through peer learning program, members will be able to foster enduring relationship and collaboration. I think this is the beauty of peer learning program.
At the G20 Summit tomorrow, it is critical that the Financial Inclusion agenda receive greater support from leaders of the G20. We need to have a concentric global effort to ensure the availability of finance for all. We need to ensure that finance becomes an enabler for people to escape from poverty. And, Indonesia believes, that through sharing experience and cooperative learning program, we can make Financial Inclusion a success story.
On its part, Indonesia will continue to place higher priority on Financial Inclusion. We have and we will continue to explore new ways and means to improve the credit worthiness of our micro, small, and medium enterprises.
But, since 2007 and April 2012, we have dispersed around US$8 billion worth government-backed micro credit to more than 6 million micro and small businesses. We expect to achieve the target of US$10 billion credit upstanding by 2013. In addition, we have successfully intensified Tabunganku or My Saving Program for low income people, which has created 2 million new saving accounts, amounting more than US$200 million. This policy has further driven new breed of entrepreneurs, in particular women and youth.
Within the southeast Asian region, we are developing our regional economic framework that takes into consideration the G20 principal for innovative Financial Inclusion. ASEAN has adopted the ASEAN Framework on Equitable Economic Development. Through this framework, we call our member states to ensure that regional economy integration has alleviate poverty and narrow the development gap within ASEAN.
Finally, let me conclude by reaffirming Indonesia’s commitment to G20 Financial Inclusion Peer Learning Program. As part of its commitment, Indonesia is planning to create a high level coordination platform for Financial Inclusion and develop a national strategy on Financial Inclusion.
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