President: RI`s migrant workers send home US$6 bln annually

Antara News, Monday, September 27, 2010 22:08 WIB

Jakarta (ANTARA News) -President Susilo Bambang Yudhoyono said that 6 billion dollars annually were sent back to Indonesia by millions of Indonesian migrant workers through the formal banking system.

"Many of those Indonesian were not accustomed to the banking services when they were in Indonesia. This shows that traditional mindset can be changed and the migrant workers are in fact going to the bank," the head of state in his opening address at the Second Alliance Financial Inclusion (AFI) Global Policy Forum, here, Monday.

According to Yudhoyono, developing people`s financial literacy is as important as developing their financial capability. It was important that people were taught about the importance and benefit of accessing financial services.

"In 2008, we introduced a national campaign called `Ayo ke bank` or in English `Let`s go to the bank`. Last year, we launched another campaign in 2009 with the slogan of `whatever the product, ensure the benefits, understand the risks and consider the costs`," he said.

People living with a low income must be given access to affordable financial services, which later could unlock many financial opportunities to improve their well-being, and close the economic and social gap.

"This will ultimately reduce poverty and inequality," he said.

According to the World Bank, some 1.4 billion people still live with an income of less than 1.25 dollars a day, therefore poverty eradication is crucial," he said.

"For Indonesia, poverty alleviation is a top priority. It is at the heart of our four-track development strategy, which is pro-growth, pro-job, pro-poor, and pro-environment," he said.

Fighting poverty required systematic, sustained and coordinated policy measures supported by necessary resources. Indonesia`s anti-poverty efforts have shown encouraging result, as . the number of Indonesians living below the poverty line has decreased from 16.7 percent of the population in 2004 to 14.1 percent in 2009.

"Even during the crisis we can reduce poverty to 13.3 percent in March 2010, " the president said.

The Second Annual AFI Global Policy Forum (GPF) dubbed "Taking Financial Inclusion to the Next Level" is being organized by AFI and Bank of Indonesia, in Jimbaran, Bali, from September 27 to 29, 2010.

Some 350 senior financial policymakers from over 60 developing countries, are participating in the Forum to discuss efforts to increase access to financial services for the poor through innovative policymaking. The first Forum was organized in Nairobi last year.

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