Published date: Jun 21 2023

Journal Title: KnE Social Sciences

Issue title: The 4th International Conference on Governance, Public Administration, and Social Science (ICoGPASS)

Pages: 259-276

DOI: 10.18502/kss.v8i11.13552

Keisha Dinya SolihatiKeisha.dinya@stialan.ac.idNIPA School of Administration Jakarta

Muhammad RizkiNIPA School of Administration Jakarta

urmita SariNIPA School of Administration Jakarta

Financial technology (Fintech) is a technological innovation developed in the financial sector so that financial transactions can be carried out practically, easily, and effectively. The progress of fintech in the field of money lending services has given rise to many applications/services based on peer-to-peer lending or online loans (pinjol). Based on the National Survey of Financial Literacy and Inclusion conducted by OJK in 2019, the financial literacy index reached 38.03%. However, 21 out of 34 provinces in Indonesia still have financial literacy levels below the average, with the lowest 3 provinces being: 1) East Nusa Tenggara (27.82%); 2) West Papua (28.87%); and 3) Papua (29.13%). Besides that there is a very high inequality when compared to the province which has the highest level of financial literacy, namely Jakarta (59.16%). NTT is also included as one of Indonesia’s 3T regions (the outermost, the frontmost, and the lagging). This study aims to examine efforts to increase financial literacy and its relation to online lending trends in East Nusa Tenggara. The study used qualitative methods, with data collection sourced from interviews, observations, and literature studies. Based on the research results, OJK has made efforts to improve financial literacy as well as to eradicate illegal online loans, which have been carried out in a planned, measurable, achievement-oriented, sustainable, and collaborative manner, one of which is demonstrated or manifested in the implementation of the Regional Investment Alert Task Force (SWID). However, the implementation of improving financial literacy needs to be continued and improved, especially in terms of the number of activities, socialization of activities that have been implemented, and improving coordination with other stakeholders.

Keywords: fintech, peer-to-peer lending, online loan, illegal, financial literacy

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