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Indonesia told to further foster financial inclusion

Development cooperation: Queen Máxima of the Netherlands (left) shakes hands with Indonesian Foreign Minister Retno LP Marsudi at the Foreign Ministry in Jakarta on Tuesday

Tama Salim (The Jakarta Post)
Jakarta
Wed, August 31, 2016

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Indonesia told to further foster financial inclusion

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span class="inline inline-center">Development cooperation: Queen Máxima of the Netherlands (left) shakes hands with Indonesian Foreign Minister Retno LP Marsudi at the Foreign Ministry in Jakarta on Tuesday. Queen Máxima is visiting Indonesia in her capacity as the United Nations Secretary General’s Special Advocate (UNSGSA) for Inclusive Finance for Development.(JP/Wendra Ajistyatama)

Visiting Queen Máxima of the Netherlands made a courtesy call to Foreign Minister Retno LP Marsudi in Jakarta on Tuesday evening, urging Indonesia to continue fostering financial inclusion through government programs.

Retno received the queen in her capacity as the UN secretary-general special advocate (SGSA) for inclusive finances for development at the UN Secretary-General’s (UNSG) Office.

The queen, appointed special advocate in 2009, previously met with President Joko “Jokowi” Widodo during his official visit to the Netherlands on April 22 and met Vice President Jusuf Kalla on the sidelines of last year’s UN General Assembly in New York.

During Tuesday’s meeting, Retno highlighted the success and strong commitment of Indonesia in implementing financial inclusion, especially through the state’s micro credit program (KUR), she told reporters afterward.

“The President has repeatedly conveyed his intent to lower interest rates in the context of the KUR program,” she said.

Other efforts include a campaign for savings aimed at lower-income families. Retno said the movement amassed US$200 million in savings from 2 million new savings accounts.

President Jokowi is also expected to sign off on the 2012 national strategy for financial inclusion, for which a number of working groups and a council will be established, the minister said.

At the national level, Indonesia has also established a national strategy blueprint on inclusive financial literacy, in addition to programs such as mobile banking.

At the global level, Indonesia continues to promote the issue of inclusion in ASEAN, the G20 forum and in the Open Working Group on Sustainable Development Goals (OWG on SDGs), as well as being one of the founders of the UN Group of Friends on Financial Inclusion.

“The takeaway from the meeting is that Indonesia will continue to increase financial inclusion [for low-income people], but on the other hand, our nation is exemplary among developing countries in promoting the issue,” she said.

Indonesia has been at the forefront of financial inclusion initiatives.”

During the visit, the queen was accompanied by Dutch Ambassador to Jakarta Rob Swartbol and UN resident coordinator to Indonesia Douglas Broderick.

Meanwhile, Retno was flanked by director general of multilateral affairs Hasan Kleib and director general for Asia Pacific and Africa Desra Percaya.

In addition to talks on multilateral issues, the queen and Retno also used their short meeting to discuss a number of bilateral issues in the field of education, culture, archives and development, as well as trade and investment opportunities of common concern.

The Netherlands remains one of Indonesia’s main comprehensive partners, placing second in terms of trade in Europe and fourth in investment in 2015.

Trade figures between the two countries reached $1.83 billion in the first half of 2016, while trade tips in favor of Indonesia, having posted $2.66 billion from the total $4.22 billion trade balance last year.

Dutch Prime Minister Mark Rutte visited Jakarta in 2013 after then president Susilo Bambang Yudhoyono canceled his planned visit to the Netherlands.

Rutte is scheduled to visit Jakarta later this year.

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