Exploring determinants of Indonesia's financial inclusion level: Based on 2017 Global Findex data

Authors

  • Indah Susilowati Faculty of Economics and Business, Diponegoro University
  • Muhammad Kanzul Fikri Faculty of Economics and Business, Diponegoro University https://orcid.org/0009-0007-5800-7415
  • Devy Mayang Sari Faculty of Economics and Business, Diponegoro University
  • Abdul Razak Faculty of Economics and Business, Diponegoro University
  • Uswatun Khasanah Faculty of Economics and Business, Diponegoro University
  • Mentari Anggun Djatayu Faculty of Economics and Business, Diponegoro University
  • Ika Suciati Faculty of Economics and Business, Diponegoro University

DOI:

https://doi.org/10.24914/jeb.v27i1.10941

Keywords:

Indonesia, financial inclusion, income level, education level, gender, age level

Abstract

This research aims to analyze the influence of income level, education level, gender, and age level on the three main indicators of financial inclusion, namely the probability of having an account at a formal financial institution, the probability of saving at a formal financial institution, and the probability of borrowing from a formal financial institution in Indonesia on 2017. Data was obtained from Global Findex 2017 using a purposive sampling method. This research uses a logistic regression analysis method with an assisted logit estimation model using Stata 16 software. The research results show that when estimating the probability of account ownership levels at formal financial institutions, only the variable gender shows insignificant results. In contrast, the other variables show significant negative values. In the model for estimating the probability of saving at formal financial institutions, two variables are not significant, namely age and gender, while other variables show significant negative results. Finally, on the probability of borrowing from formal financial institutions, only the basic education level variable shows significant negative results, while the other variables show insignificant results. The implications of this research provide insight into income, education, gender, and age and their impact on financial inclusion.

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Published

2024-04-30

How to Cite

Susilowati, I., Fikri, M. K., Sari, D. M., Razak, A., Khasanah, U., Djatayu, M. A., & Suciati, I. (2024). Exploring determinants of Indonesia’s financial inclusion level: Based on 2017 Global Findex data. Jurnal Ekonomi Dan Bisnis, 27(1), 249–270. https://doi.org/10.24914/jeb.v27i1.10941

Issue

Vol. 27 No. 1 (2024)

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Articles

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