Development of Financial Identity Number (FIN) in Indonesia: Collaboration between Bank Indonesia and the World Bank

Bank Indonesia, with financial support from the World Bank, has conducted a comprehensive study to develop a Financial Identity Number (FIN) system for households in Indonesia. This initiative represents a significant step in enhancing financial inclusion and understanding household economic dynamics in the country.

Methodology and Study Scope

The study relies on extensive survey data, covering 400,000 households involved in micro and small enterprises. A subset of this sample was examined in greater depth, down to the level of household balance sheet analysis. This approach provides a comprehensive picture of the financial conditions and needs of households across various strata of Indonesian society.

Sustainability and Policy Implications

Bank Indonesia committed to continuing this FIN study and survey on an annual basis. The results of this ongoing research serve as a key foundation for Bank Indonesia in formulating financial inclusion policies specifically targeted at micro, small enterprises, and grassroots.

Future Development Potential

Beyond its immediate benefits for policymaking, this study is also viewed as an important initial step in developing a credit scoring system for micro and small business households in Indonesia. This has the potential to open up broader access to formal financial services for previously underserved segments of society.