JAKARTA - Digital financial inclusivity and Micro, Small, and Medium Enterprise (MSME) financing are deemed essential in closing the inequality gap due to the global volatility following the COVID-19 pandemic and current geopolitical conflict. This conclusion is drawn after the 2nd Globat Partnership for Financial Inclusion (GPFI) Plenary Meeting held by G20 Presidency of Indonesia last week (12-13/5).

In the said meeting, Erwin Haryono, Executive Director and Head of Communication Department of Bank Indonesia, mentioned the need of financial framework in each country in order to drive digitalisation in order to attain an increased, inclusive, and sustainable productivity. “It is specifically targeted to MSME, youth and women,” he added in the official release quoted Tuesday (17/5).

GPFI is a working committee of G20 that focuses on financial inclusivity. The findings of this discussion will then be further passed as a recommendation during the meeting between G20 Finance Ministry and Central Bank Governors in G20 summit in July 2022.

The main discussion points regarding this financial inclusivity issue encompass GPFI’s commitment in utilising opportunities in this digital era, the reinforcement of MSME financing guide, the increase of youth’s role, and the acceleration of digitalisation in order to realise financial inclusivity through the implementation of G20 High Level Principles for Digital Financials Inclusion. (LK/ZH)