IPB University will develop a Financial Crime Scientific Branch

Permanent Professor of the Faculty of Economics and Management (FEM), IPB University, Prof. Dr. Ir R Nunung Nuryartono, MSi proposes financial inclusion economics for Indonesia's development. This proposal was delivered in a press conference pre-Professor Scientific Oration at IPB International Convention Center (IICC), Bogor (9/1).

The problem of developing countries is still on three issues namely poverty, inequality and unemployment. In his presentation, Prof. Nunung showed the results of his research which showed that there was still a significant gap between the expansion of the economic index value and the value of the social index in Indonesia. This means that not all community groups benefit from economic growth. Many people don't have access to financial institutions and access to education.

"The strategy is through financial inclusion. To begin with, we must open access to financial services to marginalized groups such as farmers, micro and small businesses and housewives. Our research results show that access to credit is very influential in the adoption of technology used by farmers. The amount of credit received by farmers can be allocated properly and is used to finance certain technologies. For business people, after getting the people's business credit (KUR), they can increase their business turnover. Likewise for housewives, apparently they can manage financial aspects better," he said.

 Also, public financial literacy is a basic prerequisite for increasing financial inclusion. The public will more easily access financial institutions if the level of financial literacy is high. The development of financial literacy will be greatly facilitated in today's digital era.

"The existence of financial technology (fintech) has and will greatly encourage financial inclusion in Indonesia. The current banking capacity is still around 660 trillion rupiahs, but the national financing needs is 1,649 trillion rupiahs. This gap is filled by fintech. Many fintech actors target rural communities, most of whom are deemed unworthy of funding. However, due to the lack of financial literacy, many people are victims of financial crime. Therefore, IPB University must contribute to developing financial literacy. One of them is in the future, financial crime is a scientific branch that will be developed at IPB University," he said. (IAAS/YN)