Factors Influence Financial Inclusion: Evidence from Indonesian Micro Data


To increase access to formal financial institutions, Indonesian government issued various national strategies. The purpose of these various strategies is to improve access and use of products of formal financial institutions to promote national economic growth. However, its development has not grown as expected. Indonesia's inclusive financial index is still under other ASEAN countries.Therefore, in this study, we investigate the factors that influence financial inclusion in Indonesia. The micro data from global findex 2014 was carried out in this study by using regression analysis. The finding indicates that there is a significant positive relationship between individual characteristics, including financial inclusion, constrains to financial inclusion, use of financial services motivation, and credit sources.