ILO holds Financial Health Pathways Forum in Indonesia, emphasizing that financial well-being requires more than access to financial...

JAKARTA, Indonesia (Press release) – The International Labour Organization (ILO), together with the Coordinating Ministry for Economic Affairs and the Financial Services Authority (OJK), held the Financial Health Pathways Forum on Thursday (15/10). Organized as part of Financial Inclusion Month, the forum brought together various stakeholders to discuss the importance of financial health in improving people's well-being, strengthening economic resilience, and promoting decent work and sustainable business growth.

The forum highlighted the importance of complementing efforts to expand financial access and literacy with an approach that focuses more on delivering tangible benefits to communities. Access to financial services is an important first step, but it does not necessarily guarantee that individuals and households can meet their daily needs, withstand economic shocks, plan for the future, and sustainably improve their well-being.

In the context of employment, financial health is also closely linked to job quality, adequate and stable incomes, access to social protection, and the ability of workers and business owners to manage economic risks.

Simrin C. Singh, ILO Country Director for Indonesia and Timor-Leste, emphasized that financial inclusion must deliver tangible benefits to the lives of workers, families, and business owners, particularly those facing economic vulnerability.

“Financial inclusion and financial health are complementary. Financial inclusion lays the foundation, while financial health ensures that access translates into genuine economic stability and resilience. Through the Financial Health Pathways Forum, ILO is ready to support Indonesia in advancing decent work towards measurable and sustainable financial health for all,” said Simrin.

Discussions at the forum reaffirmed that financial health is determined not only by individuals' ability to manage their finances, but also by employment conditions, income levels, social protection, and the availability of safe, affordable financial services that meet people's needs.

From a world-of-work perspective, strengthening financial health requires the involvement of governments, employers' organizations, and workers' organizations in promoting decent work, adequate and predictable incomes, and broader social protection coverage. These efforts can be complemented by financial education that enables workers and business owners to make more informed financial decisions.

The financial services sector also plays an important role in providing savings, payment, insurance, and responsible financing services. These products and services need to be designed around users' needs, including those of informal workers and micro, small, and medium-sized enterprises (MSMEs), considering affordability, transparency, and consumer protection to reduce the risk of excessive debt burdens.

The government is currently preparing several strategies to strengthen people's financial resilience and well-being, including plans to establish a National Financial Well-being Council (Dewan Nasional Kesejahteraan Keuangan/DNKK). In his remarks, Ali Murtopo Simbolon, Deputy for Trade and Digital Economy Coordination at the Coordinating Ministry for Economic Affairs and Chair of the Secretariat of the National Council for Financial Inclusion (Dewan Nasional Keuangan Inklusif/DNKI), explained that the new body is intended to complement and strengthen the existing DNKI.

“President Prabowo's directive to establish the DNKK marks an important step in institutionalizing financial health as a national priority, signalling Indonesia's shift towards a focus on tangible economic resilience. The lessons and insights gained from this forum will provide valuable input for the DNKK's initial priorities, ensuring that the programmes developed are grounded in evidence and reflect people's actual needs,” said Ali.

Together with the Coordinating Ministry for Economic Affairs and OJK, ILO has launched the third phase of the project Promoting Micro and Small Enterprises through Improved Entrepreneurial Access to Financial Services (Promise to Impact), demonstrating ILO's commitment to improving financial health and financial inclusion among micro, small, and medium-sized enterprises (MSMEs) and regional commodity supply chains.

“The third phase of the Promise to Impact project reflects ILO's continued support for the priorities of the Coordinating Ministry for Economic Affairs and OJK in strengthening the financial health of MSMEs, farmers, and livestock breeders across various regional supply chains. We hope that replicating this model will accelerate the transformation from mere access expansion to tangible and equitable economic well-being,” concluded Djauhari Sitorus, Project Manager for Promise to Impact, ILO.

Through multi-stakeholder collaboration, ILO is committed to supporting the Indonesian government in integrating financial health principles into decent work initiatives, social safety nets, and the national financial education strategy.

For more information, please contact:

Adelin Alexandra
ILO Communication Officer for Promise II Impact Project
[email protected]

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