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Financial service penetration, consumer characteristic and urban-rural difference - Empirical evidence on Indonesia financial service access Anna Amalyah Agus & Bambang Hermanto Management Department, Faculty of Economics, University of Indonesia, Indonesia Paper is presented for 23rd Pacific Conference of the Regional Science Association International (RSAI) 2013, Bandung, Indonesia, 2 -4 July 2013

Abstract By believing that financial inclusion (ownership of formal account) will increase economics resiliencies, in the middle of 2012, Worldbank Group had released 2011 Global Financial Inclusion Index (Global Findex) that measures financial service/product penetration and usage within 123 countries, which include Indonesia. Since Global Findex Report emphasize on national score, regional/continental comparison and assume that there is no significant socio-cultural difference within a country, there are no sufficient discussions toward consumer characteristics, cultures and urban-rural contexts within the reports. Our research approach is trying to fill the gap by focusing on consumer characteristic (psychographic), provincial-urban-rural difference and ownership of formal account (which include credit, insurance and investment penetration). The approach is taken in order to get better understanding toward the demand-side of Indonesia financial service sectors, several groups of consumers which come from multicultural background and social values difference. Data is covering 17 Indonesia provincial areas (Bali, Banten, Jakarta, Yogyakarta, West Java, Central Java, East Java, West Kalimantan, South Kalimantan, East Kalimantan, Lampung, Riau, South Sulawesi, West Sumatra, South Sumatra, North Sumatra and North Sulawesi) as proxy of 17 different socio-cultural characteristic. Data is gathered from Roy Morgan single source database, January-December 2009-2010 period, and processed through Asteroid 5 software. As predicted, financial service penetration and usage level are different, within provincial area and within psychographic classifications. Topics Keywords

: Poverty, Inequality and Inter-regional Disparity, Regional Development Issues in Southeast Asia and the Pacific : financial access, financial inclusion

1. Background Worldbank Group has been recognized that the long period of the financial system that functioning well is critical for the economic development of a country. Research works in finance within Worldwide Worldbank office for many years have more emphasis on the importance of the stability and efficiency of financial services. However, things related to promote wider access to financial services is still lacking compared to what is disclosed in theory, so that access to the development dimension of the financial sector tend not to be seen, because there is a gap / lack of significant data (Demirgüç- Kunt, Beck and Honohan: 2008) Access to financial services - commonly known as inclusive finance - reflecting the absence of barriers to the use of financial services, both constraints are price and non-price. In general there are three barriers related to financial services. First, physical access related to geography. In one case there is a condition in which the financial institution provides its clients access to services via the telephone or internet, while there are other cases that should carry out transactions at a branch office or use the automated teller machine (ATM). Second, the lack of good documentation aspect. Financial institutions typically require temporary identification document for the people who work in the informal sector do not have the relevant documents. Third, many financial institutions are implementing rate or minimum balance fee is not affordable by most of society. For example, there

are still financial institutions in several countries require initial balance reaches 50% of GDP per capita (Demirgüç-Kunt, Beck and Honohan: 2008) Associated with the structure of services and products are increasingly complex financial sector, when the amount of expansion of credit availability increases, the level of financial education to be very important. Competition from financial sector players and the development of increasingly sophisticated products, making a very high level of importance for both individual consumers and households to acquire knowledge that can help them to evaluate the products and services provided by various financial institutions. It aims to determine which financial services products that suit the needs of long-term and / or short-term (Greenspan, 2005 at Erturk, Froud, Johal, Leaver and Williams: 2007). Amount of literature has explained determinant of offers banking services and financial intermediation within the framework describes the development of the financial sector as an important factor in economic growth (Levin: 2005, in Cole, Sampson and Zia: 2011). However, the determinants of financial services is rather difficult to understand, especially in countries with developed market characteristics (emerging markets). One important aspect in this growing market is the size of the informal sector, informal sector which includes 14% of GDP in China, 23% in Indonesia, 24% in India, compared to 8% in the United States. (Buehn & Schneider: 2009 in, Cole, Sampson and Zia: 2011) Meanwhile, there is evidence that savings, credit and insurance that are informal and / or performed by informal institutions function well in a country with a growing market, which defeated the amount of participation in the formal financial market. (Beck, Demirgüç-Kunt and Peria: 2007). In addition to the three aspects of the previously disclosed financial barriers (Demirgüç-Kunt, Beck and Honohan: 2008), there is another point of view which states that the limited level of financial literacy is a cause obstruction of the financial services demand, if someone is not familiar or comfortable with a financial product, not will create a demand for such financial products. Wimboh & Sukada: 2011 from central bank of Indonesia, have conducted a survey of the condition of Indonesian household balance sheets. As a result, Indonesian households have a minimal threat to the financial sector. The high net worth household finances and the large proportion of fixed assets (compared to financial assets) to total assets of households implies that there is a huge scope of financial institutions that can be used to market their products - especially insurance, capital market products and bank deposits - to households. While banks and non-bank financial institutions can create new types of loan products, as an example of the use of the home or assets as collateral. In this regard, Bank Indonesia considering to launch a consumer education program to ensure that households in Indonesia have better information related financial products. However, research has not Wimboh & Sukada may reflect the condition of Indonesia due to just take a sample of 6 of the 33 provinces in Indonesia. In 2011, Demirgüç-Kunt and Klapper follow up study conducted earlier, through its branch in the world Worldbank with inclusive finance survey covering 150,000 adults in 148 countries representing about 97 percent of the total world population. Motivation of this study due to the lack of systematic data related to how households use financial services and is still a lack of empirical literature investigating the relationship between financial access to economic growth. This study uses four main indicators to measure the inclusive finance in a systematic and consistent in the various countries in the world. The first indicator, covering matters relating to the use of formal accounts, which include among others the use of mechanisms (frequency, mode of access), the intended use of accounts

(personal, business, payroll, receipts from government or family), barriers to the use of alternate accounts and account formal (mobile money). The second indicator related to savings behavior, which is covered in it on account of the use of formal financial institutions, the use of community-based savings and where the purpose of saving. The third indicator associated with matters related to borrowing money (formal and informal), the purpose of borrowing money (mortgage, emergency, health, etc.) and the use of credit cards. While the fourth indicator, focusing on the use of insurance products for health and agricultural purposes. From the survey it was found that the per capita income in explaining variation in account penetration various countries / economies, but few explain in countries with low per capita incomes. In addition it also found that there is strong correlation between inequality in the use of formal accounts with income inequality, which is contained in the following charts:

There is an interesting finding in the regression analysis of the study. Found that banks in countries with a better phone network has the requisite balance of account opening lower, lower costs account, the number of documents to open an account a little more, the permissibility of the loan application through various channels, the process is faster in loan applications and lower ATM fees. While banks in the country with a higher power, asking for a higher minimum balance, the higher the cost, the minimum loan amount is higher, the process of borrowing is longer and costs higher international transfer.

In other research, it was found that the system of credit information dissemination to the public that is more efficient to make the banks can have the process of conducting an assessment of loan applications, which potentially reduce reliance on credit selection mechanisms that are non-interest such as minimum loan amount and costs. Moreover the system more efficient dissemination of information to increase the likelihood of the use of lines of credit applications by using fewer people, such as telephone and / or internet which accelerates the process of borrowing / credit, so that the operation of financial institutions to be more efficient (Haselmann, Pistor and Vig, 2005; Visaria, 2006, in Beck, Demirgüç-Kunt and Peria: 2006) Furthermore, the connection between the level of financial literacy and financial inclusive, a good level of financial literacy can help the process of adaptation to the consumers of insurance products, which are considered more complex and exclusive compared to other financial products (Gaurav, Cole, Tobacman: 2011)

2. Worldbank Indicators The Global Findex indicators are drawn from survey data collected over the 2011 calendar year, covering more than 150,000 adults in 148 economies and representing about 97 percent of the world’s population. The survey was carried out by Gallup, Inc. in as-sociation with its annual Gallup World Poll, which since 2005 has surveyed about 1,000 people annually in each of up to 157 economies, using randomly selected, nationally representative samples. The survey methodology is that used for the Gallup World Poll. Surveys are conducted face to face in economies where telephone coverage represents less than 80 percent of the population. In most economies the fieldwork is completed in two to four weeks. In economies where face-to-face surveys are conducted, the first stage of sampling is the identification of primary sampling units, consisting of clusters of households. The pri-mary sampling units are stratified by population size, geography, or

both, and clustering is achieved through one or more stages of sampling. Where population information is available, sample selection is based on probabilities proportional to population size; otherwise, simple random sampling is used. There are four set of indicators that build the financial inclusion index. The first set of indicators focuses on formal accounts; the mechanics of the use of these accounts (frequency of use, mode of access); the purpose of these accounts (personal or business, receipt of payments from work, government, or family); barriers to account use; and alternatives to formal accounts (mobile money). The account penetration indicator measures individual or joint ownership of formal accounts— accounts at a formal financial institution such as a bank, credit union, cooperative, post office, or microfinance institution. It includes those who report having a debit or ATM card tied to an account. Indicators relating to the receipt of payments measure the use of formal accounts to receive wages (payments for work or from selling goods), payments or money from the government, and family remittances (money from family members living elsewhere). The second set of indicators focuses on savings behavior. This relates to the use of accounts, as people often save at formal financial institutions. Other indicators explore the use of community-based savings methods and the prevalence of savings goals. The third set focuses on sources of borrowing (formal and informal); purposes of borrowing (mortgage, emergency or health purposes, and the like); and use of credit cards. The fourth focuses on use of insurance products for health care and agriculture. Comparing Indonesia financial inclusion index to other countries index with lower middle income (LMC), Lower and middle income, Lower income (LIC) and Middle income (MIC), Indonesia relatively on par which still considered as low financial inclusion condition. However, for several categorical aspects, Indonesia index score are far above those countries, which are : Categories Account used to receive remittances (% age 15+) ATM is main mode of withdrawal (% with an account, age 15+) ATM is main mode of withdrawal, rural (% with an account, age 15+) ATM is main mode of withdrawal, urban (% with an account, age 15+) Loan from family or friends in the past year (% age 15+) Loan from family or friends in the past year, rural (% age 15+) Loan from family or friends in the past year, urban (% age 15+) Outstanding loan for health or emergencies (% age 15+) Outstanding loan for health or emergencies, rural (% age 15+) Outstanding loan for health or emergencies, urban (% age 15+) Outstanding loan to pay school fees (% age 15+) Outstanding loan to pay school fees, rural (% age 15+) Outstanding loan to pay school fees, urban (% age 15+) Saved any money in the past year (% age 15+) Saved any money in the past year, rural (% age 15+) Saved any money in the past year, urban (% age 15+) Saved at a financial institution in the past year (% age 15+) Saved at a financial institution in the past year, rural (% age 15+) Saved at a financial institution in the past year, urban (% age 15+) Saved for emergencies in the past year (% age 15+) Saved for emergencies in the past year, rural (% age 15+) Saved for emergencies in the past year, urban (% age 15+) Saved using a savings club in the past year (% age 15+) Saved using a savings club in the past year, rural (% age 15+) Saved using a savings club in the past year, urban (% age 15+)

Index Score 6,135895 51,14214 38,53819 70,86497 42,30019 40,65272 46,89446 18,69665 18,5382 19,13849 10,72128 10,74457 10,6563 40,50316 37,2327 49,62347 15,28832 12,54505 22,93844 33,78782 30,71613 42,35378 13,86014 12,41798 17,88187

From data above, there are five things that could be inferred. First, Rural area is less inclusive compare to urban area in all aspect that build financial inclusion index. Second, Indonesia has good and wide ATM infrastructure in supporting the financial service needs. Third, Family and friends could be considered as financial institution competitors in regards of credit-related products. Fourth, Most of outstanding loans in Indonesia are for health emergencies and school fees, which implied that healthcare system not yet fulfilling people’s need and there are no such thing as educational planning Fifth, Saving level quite high, which focus on facing emergency. However, saving medium are not necessary a financial institution product, it could take other informal format like community saving club. Since Global Findex Report emphasize on national score, regional/continental comparison and assume that there is no significant socio-cultural difference within a country, there are no sufficient discussions toward consumer characteristics, cultures and urban-rural contexts within the reports. Due to the fact that Indonesia is a highly populated countries with high culture diversities, it will be beneficial to understand the diferences among region/province in order to create new approach in

3. Understanding Indonesia financial inclusion through Roy Morgan Single Source/ Asteroid Software Roy Morgan Single Sources is a Australia’s leading syndicated market research and one of the few genuine Single Source studies in the world. Instead of ‘fusing’ the answers to questions about brand preferences, for example, from one group of respondents with the answers to questions about media usage, for example, from a different group of respondents, Roy Morgan Single Source is unique in that all the answers are from a Single Source -around 55,000 interviews every year in Australia alone. The information we collect relates to lifestyle and attitudes, media consumption (including TV, radio, newspapers, magazines, cinema, catalogues, outdoor, pay TV and the Internet) brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation & leisure activities. Indonesia is the world’s fourth-largest country and the second-fastest growing G-20 nation. Since it became a democracy in 1998, the country has seen some major social changes, and the Roy Morgan Single Source survey has captured many of them. Roy Morgan Single Source in Indonesia covers more than 30 industries, over 150 product categories and 1500-plus brands, connecting them to core data such as the demographics, income and expenditure, attitudes and opinions, sports and leisure, lifestyle and media consumption of more than 26,000 respondents. Adding another dimension to Single Source, Roy Morgan Values Segments combine attitudinal insights with demographics. This enables marketers to map society as a whole or identify a brand’s traction among distinct socio-economic segments. Asteroid is an award-winning software, which helps to manage and analyse data. Its power and simplicity allows even users with a minimum of experience, aptitude and training to explore data, generate & test hypotheses, follow up ideas and search for supporting evidence. The program’s rapid response to even the most complex queries encourages researchers to be more creative in using survey results. By optimizing the output, ASTEROID adds value to surveys, where most of the cost is in the collection of the data.

3.1. Household characteristics in 17 province during 2009-2010 Households in Jawa Bali Area are much prosper in term of social-economy compare to Outer Jawa Bali area, which reflected through average Household score. Although Jabar, Jateng and Jatim has higher population, Jakarta give significant contribution on national proportion of highest Social-economy status, which even higher in 2010. Tahun 2009

Jawa Bali Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Bali

Single  14-­‐34  No  Children

6.8%

5.3%

27.0%

11.9%

2.5%

20.5%

2.7%

Single  14-­‐34  Children

3.6%

1.7%

5.3%

27.2%

0.0%

7.8%

0.9%

Married  14-­‐34  no  children

6.2%

5.8%

18.5%

16.8%

1.7%

17.4%

3.1%

Married  14-­‐34  children

7.0%

5.4%

24.5%

18.9%

1.2%

19.6%

1.0%

Married  35+  children

4.8%

4.1%

19.9%

22.0%

2.2%

19.4%

0.7%

Married  35+  no  children

4.5%

2.5%

20.0%

18.9%

2.0%

23.2%

3.0%

Single  35+  children

5.0%

1.4%

16.2%

29.4%

3.2%

18.4%

0.7%

Single  35+  no  children

4.8%

1.3%

13.5%

10.0%

1.4%

42.6%

1.8%

>  4.250.000

14.3%

3.6%

18.3%

12.7%

0.3%

9.0%

4.2%

3.250.001  -­‐ 4.250.000

17.1%

12.8%

12.8%

2.6%

0.5%

14.4%

1.8%

2.250.001  -­‐ 3.250.000

13.5%

27.9%

12.1%

6.4%

0.0%

11.4%

4.0%

1.750.001  -­‐ 2.250.000

14.6%

8.4%

19.7%

7.1%

0.4%

16.0%

3.7%

1.250.001  -­‐ 1.750.000

11.9%

7.5%

20.9%

12.1%

1.5%

16.8%

1.9%

800.001  -­‐ 1.250.000

6.6%

3.5%

26.4%

21.4%

2.4%

13.5%

1.8%

600.001  -­‐ 800.000

0.9%

2.0%

24.3%

11.6%

1.8%

26.4%

1.4%

400.001  -­‐ 600.000

0.2%

0.4%

6.9%

26.2%

2.6%

36.0%

1.3%

400.000  or  less

0.0%

0.0%

0.5%

37.3%

2.2%

35.2%

0.6%

no  answer  /  can't   say

3.4%

1.0%

8.2%

17.9%

20.0%

4.3%

22.6%

Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Bali

Single  14-­‐34  No  Children

6.8%

5.0%

20.5%

14.2%

1.7%

19.2%

1.5%

Single  14-­‐34  Children

9.7%

4.3%

16.3%

22.5%

0.9%

5.9%

0.1%

Married  14-­‐34  no  children

7.5%

6.5%

23.0%

13.4%

1.4%

16.2%

3.5%

Married  14-­‐34  children

6.1%

4.1%

21.4%

18.9%

1.8%

21.4%

1.8%

Married  35+  children

5.0%

4.7%

22.8%

19.5%

2.2%

19.2%

1.2%

Married  35+  no  children

4.1%

2.7%

16.1%

19.8%

2.1%

25.4%

3.1%

Single  35+  children

7.7%

4.9%

21.7%

16.4%

3.2%

13.2%

2.0%

Single  35+  no  children

5.1%

2.1%

13.9%

14.3%

3.1%

26.8%

1.8%

>  4.250.000

21.6%

5.9%

17.7%

8.3%

0.6%

19.2%

1.8%

3.250.001  -­‐ 4.250.000

12.9%

8.0%

16.8%

11.9%

0.1%

11.9%

0.8%

2.250.001  -­‐ 3.250.000

13.4%

13.6%

19.9%

14.4%

0.9%

15.2%

1.1%

1.750.001  -­‐ 2.250.000

11.9%

7.1%

27.3%

7.5%

2.5%

13.7%

3.1%

1.250.001  -­‐ 1.750.000

10.0%

6.7%

23.5%

12.8%

2.9%

12.7%

3.1%

800.001  -­‐ 1.250.000

6.3%

4.4%

25.3%

17.1%

1.8%

17.2%

1.7%

600.001  -­‐ 800.000

1.4%

1.9%

20.7%

17.4%

2.0%

26.4%

0.9%

400.001  -­‐ 600.000

0.3%

1.5%

7.0%

26.7%

1.7%

36.5%

1.4%

400.000  or  less

0.4%

0.9%

3.7%

33.0%

1.1%

23.0%

0.3%

no  answer  /  can't   say

5.6%

2.0%

21.1%

12.9%

0.8%

11.6%

14.6%

Average  Household  LC

Average  Household  SES

Tahun 2010

Jawa  Bali

Average  Household  LC

Average  Household  SES

In Outer Jawa Bali Area, Although Riau is less populated than Sumut and Sumsel, its national contribution on higher SES score is higher, this could be a result of palm oil commodity booming in 2009. In 2010, outer Jawa contribution of higher SES is lower than 2009, which could be implied that growth of income and economy is dominated by Jawa-Bali area. Outer  Jawa Bali

Tahun 2009

Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel

Average  Household  LC Single  14-­‐34  No  Children

8.3%

2.8%

4.1%

2.9%

3.2% 2.6% 1.9%

1.6% 2.5%

Single  14-­‐34  Children

0.7%

0.3%

0.9%

3.8%

0.9% 1.4% 0.1%

0.3% 45.1%

Married  14-­‐34  no  children

5.1%

2.0%

6.3%

7.2%

3.3% 3.8% 0.8%

1.0% 1.0%

Married  14-­‐34  children

4.1%

1.1%

2.4%

4.2%

3.0% 1.6% 1.9%

1.1% 2.9%

Married  35+  children

5.4%

1.3%

4.6%

2.9%

2.4% 1.5% 2.6%

1.6% 4.5%

Married  35+  no  children

7.4%

4.4%

2.0%

4.1%

1.4% 1.8% 0.4%

1.6% 2.7%

Single  35+  children

3.5%

1.5%

7.4%

1.4%

0.4% 0.1% 2.9%

0.0% 8.4%

Single  35+  no  children

3.8%

2.7%

5.8%

0.7%

2.7% 1.2% 0.3%

0.0% 7.3%

>  4.250.000

5.1%

0.0%

4.2%

2.4%

22.3% 0.4% 3.1%

3.4% 0.6%

3.250.001  -­‐ 4.250.000

2.1%

2.1%

1.0%

0.6%

29.6% 1.4% 0.5%

0.4% 0.1%

2.250.001  -­‐ 3.250.000

4.8%

0.2%

1.4%

0.9%

16.1% 0.1% 0.1%

0.7% 0.3%

1.750.001  -­‐ 2.250.000

9.5%

0.3%

5.6%

0.8%

11.8% 0.4% 0.4%

1.1% 0.4%

1.250.001  -­‐ 1.750.000

10.2% 1.4%

3.3%

1.6%

4.2% 1.2% 1.0%

2.3% 2.3%

800.001  -­‐ 1.250.000

7.3%

1.4%

3.1%

1.4%

0.8% 1.5% 2.8%

2.3% 3.7%

600.001  -­‐ 800.000

3.8%

2.7%

4.2%

6.6%

0.1% 2.9% 2.0%

0.6% 8.7%

400.001  -­‐ 600.000

3.3%

2.8%

5.5%

7.7%

0.1% 2.6% 0.0%

0.0% 4.4%

400.000  or  less

0.3% 12.1% 1.4%

5.5%

0.0% 4.4% 0.4%

0.0% 0.1%

no  answer  /  can't   say

13.0% 0.0%

0.0%

2.1% 1.7% 0.8%

0.9% 0.1%

Average  Household  SES

Tahun 2010

4.0%

Outer  Jawa Bali Sumut Sumbar Sumsel

Lampung

Riau

Kalbar Kalsel

Kaltim

Sulsel

Sulut

Average  Household  LC Single  14-­‐34  No  Children

7.9%

2.7%

4.6%

3.7%

2.9%

1.8%

1.4%

1.6%

3.9%

0.9%

Single  14-­‐34  Children

2.2%

0.9%

0.7%

0.5%

2.0%

1.2%

6.7%

1.2%

24.6%

0.8%

Married  14-­‐34  no  children

4.3%

0.8%

3.0%

6.1%

4.3%

2.0%

2.8%

1.0%

2.7%

3.2%

Married  14-­‐34  children

4.7%

1.4%

3.2%

3.5%

2.3%

2.6%

1.4%

1.4%

3.5%

0.8%

Married  35+  children

7.1%

2.0%

3.0%

2.6%

1.5%

1.4%

1.0%

1.8%

4.3%

1.2%

Married  35+  no  children

4.9%

2.8%

3.0%

4.2%

3.0%

2.3%

2.0%

0.9%

3.0%

1.1%

Single  35+  children

2.8%

5.2%

7.7%

0.6%

2.4%

0.9%

4.2%

0.1%

6.7%

0.6%

Single  35+  no  children

3.7%

4.2%

6.5%

2.0%

4.2%

1.2%

2.7%

0.5%

6.8%

2.2%

>  4.250.000

0.5%

1.7%

3.7%

0.2%

9.9%

0.9%

0.3%

5.5%

2.2%

0.1%

3.250.001  -­‐ 4.250.000

4.1%

1.6%

2.9%

0.2%

22.1%

0.6%

0.9%

2.1%

3.0%

-­‐

2.250.001  -­‐ 3.250.000

2.8%

1.7%

4.2%

0.6%

5.5%

0.8%

0.6%

2.6%

2.0%

1.1%

1.750.001  -­‐ 2.250.000

1.7%

4.0%

6.4%

1.2%

4.8%

2.0%

0.8%

3.8%

1.4%

1.3%

1.250.001  -­‐ 1.750.000

4.3%

3.8%

8.7%

0.8%

3.1%

1.0%

0.9%

2.7%

1.9%

1.9%

800.001  -­‐ 1.250.000

2.1%

2.8%

9.4%

1.4%

1.9%

1.2%

1.9%

1.2%

3.6%

1.3%

600.001  -­‐ 800.000

1.6%

3.5%

3.6%

6.4%

1.7%

3.1%

2.8%

0.2%

6.0%

0.8%

400.001  -­‐ 600.000

1.0%

5.2%

1.8%

7.3%

0.8%

3.0%

1.4%

0.1%

4.0%

0.8%

400.000  or  less

1.9%

5.9%

0.6%

11.1%

1.2%

2.6%

1.2%

-­‐

13.1%

-­‐

no  answer  /  can't   say

1.6%

1.3%

1.0%

2.3%

4.9%

4.5%

1.3%

1.8%

12.0%

1.2%

Average  Household  SES

3.2. Household saving in 17 province during 2009-2010 On average, account penetration in Jawa-Bali area is higher than Outer Jawa Bali. Surprisingly, in 2009 Riau has the highest contributors of Saving account ownership in national level followed by Bali (35,7%), south Kalimantan (34,3%) and West Kalimantan (33,6%), meanwhile Jakarta account penetration only reach (20,5%). In General, account penetration in 2010 is slightly better than 2009. This could be because heavy campaign on Tabunganku, a low cost saving account which nationally distributed on every type of banks, as national strategy on increasing financial access. However not every area response Tabunganku well. Tabunganku have higher penetration on outer Jawa-Bali area compare to jawaBali Tahun 2009

Jakarta

Banten

Jabar

Jawa-­‐Bali Jateng

20.5% 0.0% 0.0%

16.4%

11.2% 0.1% 0.0% 0.0% 0.1% 0.1%

20.2% 0.0% 0.0% 0.0% 0.0% 0.1%

20.5% 79.4% 0.1%

0.0% 0.0% 11.3% 88.7% 0.0%

0.1%

0.0% 16.4% 83.4% 0.1%

Jakarta

Banten

Jabar

25.2% 0.2% 0.0% 25.3% 0.2% 0.2% 0.0% 0.1% 0.2% 0.0% 0.0%

13.5% 0.3%

25.5% 74.4% 0.2%

13.7% 86.0% 0.3%

14.5% 0.0% 0.0% 14.5% 0.0% 0.1% 0.0% 0.1% 0.2% 0.0% 0.2% 0.0% 14.9% 84.7% 0.4%

DIY

Jatim

Bali

13.1%

15.8% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0%

32.2%

Savings Savings  account Current  account Term  Deposit Junior  Account Education  savings Syariah Foreign  Currency Other  Current Account  unspecified TOTAL  Have  Account None can't  say

0.2%

0.0% 0.0%

Tahun 2010 Savings Regular/Basic  Savings  Account  (revised  Jul10) Premium/Plus  Savings  Account  (from  Jul10) TabunganKu  (from  Jul10) Total  Savings  account Current  account Term  Deposit Junior  Account Education  savings Syariah Foreign  Currency Other  Current Account  unspecified TOTAL  Have  Account None can't  say

Tahun 2009 Savings  account Current  account Term  Deposit Junior  Account Education  savings Syariah Foreign  Currency Other  Current Account  unspecified TOTAL  Have  Account None can't  say

Savings

13.6% 0.1% 0.1% 0.0% 0.0%

0.0% 2.9%

20.3% 79.7% 0.0%

3.2% 0.2% 0.0% 6.1% 0.2% 0.1% 35.7% 64.0% 0.3%

16.0% 84.0%

15.8% 84.2%

DIY

Jatim

Bali

20.4% 0.2% 0.0% 20.5% 0.0% 0.1% 0.2% 0.1% 0.1% 0.0% 0.1%

21.8%

20.3%

33.6% 0.5% 33.8% 0.0% 1.4%

20.8% 78.9% 0.3%

21.8% 77.8% 0.4%

0.0% 20.4% 0.1% 0.1% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 20.4% 79.5% 0.1%

Jawa  Bali Jateng

21.8% 0.5% 0.1% 0.1%

0.1% 33.8% 66.1% 0.0%

Outer  Jawa Bali Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel 2.7% 11.2% 0.0% 0.1% 0.0% 0.0% 0.0%

5.3%

5.7%

34.6% 26.0% 34.1% 33.6% 12.3% 0.0% 0.1% 0.3% 0.0%

5.3% 0.4% 0.2% 0.0%

2.7% 11.2% 5.3% 97.3% 88.8% 94.5% 0.1%

0.0%

0.1%

0.2% 5.7% 36.9% 26.4% 34.3% 94.3% 63.1% 73.6% 65.7% 0.1%

0.1% 33.6% 66.2% 0.2%

0.2% 12.5% 87.5% 0.0%

Outer  Jawa Bali

Tahun 2010 Savings Regular/Basic  Savings  Account  (revised  Jul10) Premium/Plus  Savings  Account  (from  Jul10) TabunganKu (from  Jul10) Total  Savings  account Current  account Term  Deposit Junior  Account Education  savings Syariah Foreign  Currency Other  Current Account  unspecified TOTAL  Have  Account None can't  say

Sumut SumbarSumsel 24.9% 9.9% 0.2% 0.0% 25.0% 9.9% 0.1% 0.4% 0.1% 0.5% 0.0% 0.1% 0.0% 1.1% 0.1%

Lampun Riau Kalbar Kalsel Kaltim Sulsel Sulut g

9.7%

10.0% 40.3%11.7%13.4%47.4% 17.9%16.0% 1.8% 0.1% 0.0% 2.8% 0.0% 0.6% 0.5% 0.0% 1.0% 9.7% 10.9% 40.3%11.7%13.8%48.8% 17.9%17.0% 0.1% 0.0% 0.0% 0.0% 0.4% 0.0% 0.1% 0.0% 0.2% 0.4% 0.0% 0.1% 0.0% 0.4% 0.1% 0.9% 0.2% 0.0% 0.0% 0.0% 0.1% 0.4% 0.0% 0.1% 0.0% 1.5% 0.1% 0.0% 0.3% 2.6% 1.3% 0.0% 0.0% 0.0% 0.1% 0.0% 0.1% 0.0% 0.0% 25.1% 9.9% 9.9% 10.9% 40.7%12.0%14.2%49.2% 20.4%18.0% 74.9% 89.9% 90.1% 89.0% 58.7%78.8%85.7%50.8% 79.3%82.0% 0.2% 0.1% 0.6% 9.3% 0.1% 0.3%

If we take a look on respondents who own or use mobile phone, the score of saving account penetration is higher than the general one and consistent for both of period. We also could see, better tabunganku account penetration for respondents who owned or use mobile phone. Tabunganku product show strong presence in West java, east Java, Bali, South Kalimantan, East Kalimantan and North Sulawesi. This could be implied that a national-generic strategy will not work well if not accomodated with proper communication that adapt local/provincial characteristics.

Jawa-­‐Bali Tahun 2009

Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Bali

own  or  use  a  mobile  phone a  GSM  Phone

6.5%

5.2%

22.6%

16.1%

2.3% 22.0%

2.7%

a  CDMA  Phone

25.6%

10.3%

25.7%

3.1%

3.0% 20.2%

5.1%

GSM  and  CDMA  Phone

28.6%

9.1%

27.0%

5.2%

2.1% 15.3%

5.0%

total  own  or  use

9.3%

6.0%

23.0%

14.0%

2.5% 22.0%

3.1%

total  do  not  own  or  use

2.8%

3.0%

18.7%

20.1%

1.5% 19.9%

0.9%

can't  say

6.0%

2.1%

2.3%

35.4%

2.6% 13.0%

3.0%

Savings  account

7.6%

4.6%

14.6%

22.7%

1.7% 20.9%

3.9%

Current  account

4.6%

75.5%

0.1%

6.2%

Term  Deposit

1.7%

9.6%

0.4%

17.6%

57.0%

5.2%

0.6%

2.6%

31.6%

50.2%

0.2%

43.5%

4.5%

3.8%

6.9%

0.2%

39.0%

20.6%

48.2%

12.3%

Savings

6.4%

Junior  Account Education  savings Syariah

0.3%

Foreign  Currency

0.2%

90.3% 9.5%

Other  Current Account  unspecified

0.1%

0.9%

13.6%

8.4%

TOTAL  Have  Account

7.5%

4.5%

14.5%

22.5%

2.0% 20.6%

None

5.5%

4.3%

21.5%

16.7%

2.0% 20.8%

25.7%

17.8%

7.9%

1.3%

can't  say

8.3% 4.3% 1.4% 18.2%

Jawa-­‐Bali

Tahun 2010

Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Bali

a  GSM  Phone

5.8%

3.8%

20.9%

17.1%

2.5%

19.9%

2.4%

a  CDMA  Phone

24.0%

9.4%

28.7%

5.7%

2.1%

19.0%

2.5%

GSM  and  CDMA  Phone

23.0%

7.1%

29.4%

7.7%

1.5%

17.5%

1.6%

total  own  or  use

7.9%

4.6%

21.7%

15.7%

2.5%

19.9%

2.5%

total  do  not  own  or  use

2.6%

3.9%

16.8%

20.3%

1.1%

22.6%

1.0%

can't  say

5.2%

4.1%

42.9%

17.9%

4.0%

0.3%

Regular/Basic  Savings  Account  (revised  Jul10)

7.9%

3.1%

15.8%

19.1%

22.5%

3.4%

Premium/Plus  Savings  Account  (from  Jul10)

7.1%

6.5%

0.4%

23.5%

TabunganKu  (from  Jul10) Total  Savings  account

1.6%

15.5%

0.8%

7.8%

3.1%

15.7%

19.1%

Current  account Term  Deposit

20.7% 9.7%

9.7% 1.6%

3.4% 10.7%

Junior  Account

0.5%

0.8%

Education  savings

7.8%

0.2%

Syariah

4.6%

17.4%

4.5%

4.8%

Foreign  Currency Other  Current

6.3% 1.5%

89.4% 61.1%

0.9% 21.4%

2.5% 7.4%

own  or  use  a  mobile  phone

Savings

Account  unspecified

2.3%

13.4%

15.6%

2.3%

22.4%

3.4%

1.9% 17.3%

7.3%

22.8% 15.9%

1.5% 17.5%

6.0%

33.9%

2.4%

2.4%

19.6%

25.4%

2.1%

18.9%

68.1%

1.6%

6.1%

-­‐

TOTAL  Have  Account

7.8%

3.1%

15.9%

19.1%

2.2%

22.1%

3.4%

None

5.4%

4.6%

21.3%

17.1%

1.9%

20.3%

1.5%

Tahun 2009

Outer  Jawa-­‐Bali Sumut

Sumbar

Sumsel Lampung

Riau

Kalbar

Kalsel

Kaltim

Sulsel

a  GSM  Phone

3.6%

1.6%

1.7%

5.1%

4.4%

2.7%

1.4%

1.0%

1.1%

a  CDMA  Phone

1.0%

0.2%

1.4%

0.5%

0.6%

0.8%

0.3%

1.3%

0.9%

GSM  and  CDMA  Phone

1.0%

total  own  or  use

3.2%

0.3%

0.6%

0.8%

1.8%

1.4%

0.9%

0.4%

0.5%

1.3%

1.7%

4.4%

3.8%

2.4%

1.2%

1.1%

1.1%

total  do  not   own  or  use

8.6%

3.2%

5.4%

2.9%

1.1%

1.3%

2.1%

1.7%

6.8%

can't  say

4.0%

0.3%

1.6%

0.1%

14.9%

9.2%

1.5%

0.2%

3.9%

Savings  account

1.0%

1.6%

1.2%

1.3%

5.7%

3.2%

3.6%

3.0%

3.3%

Current  account

13.3%

Term  Deposit

7.3%

Junior  Account

0.8%

10.9%

48.1%

Education  savings

1.6%

Syariah

0.0%

own  or  use  a  mobile  phone

Savings 0.3%

0.1% 45.8%

2.7%

1.3%

Foreign  Currency Other  Current

2.3%

1.2%

Account  unspecified

8.4%

TOTAL  Have  Account

1.0%

1.6%

1.2%

1.3%

None

7.1%

2.4%

4.1%

4.0%

can't  say

7.1%

15.4%

3.2% 1.9%

3.6%

6.8%

48.7%

1.3%

2.9%

3.3%

1.1%

4.4%

8.0%

1.2%

1.7% 4.4%

18.2%

Tahun 2010

Outer  Jawa-­‐Bali Sumut

Sumbar

Sumsel Lampung

own  or  use  a  mobile  phone a  GSM  Phone a  CDMA  Phone GSM  and  CDMA  Phone

Riau

Kalbar

Kalsel

Kaltim

Sulsel

Sulut

2.6% 0.5% 0.8%

2.3% 1.2% 1.0%

5.5% 1.1% 1.1%

4.3% 1.0% 1.7%

3.7% 0.8% 1.8%

2.0% 0.6% 0.9%

1.5% 1.0% 1.3%

1.6% 0.4% 0.8%

3.2% 1.5% 2.2%

1.6% 0.7% 1.4%

total  own  or  use

2.3%

2.2%

total  do  not   own  or  use can't  say

2.2% 0.0%

6.0% 1.8%

5.1%

3.9%

3.3%

1.8%

1.4%

1.5%

3.0%

1.5%

7.9% 0.3%

3.0% 0.9%

1.3% 5.2%

2.0% 3.3%

2.0% 1.6%

0.9% 7.3%

6.1% 3.6%

0.5% 3.5%

3.0%

1.9%

3.1%

1.9%

5.5%

1.2%

1.2%

3.5%

4.0%

1.0%

36.2%

0.9%

0.0%

2.0% 1.1%

5.5% 2.8% 0.2% 10.4% 0.9% 13.3%

0.1% 4.0% 0.0% 0.7% 8.1% 2.3% 37.5%

20.3% 1.0%

Savings Regular/Basic  Savings  Account  (revised   Jul10) Premium/Plus  Savings  Account  (from   Jul10) TabunganKu  (from  Jul10) TotalSavings  account Current  account Term  Deposit Junior  Account Education  savings Syariah Foreign  Currency Other  Current Account  unspecified TOTAL  Have  Account None can't  say

3.0% 3.0% 6.8% 12.7% 4.5% 8.9%

2.2% 1.9% 6.2% 2.0% 1.0% 2.4% 1.0%

3.1% 15.2% 4.0% 6.1% 3.2% 2.3%

2.2% 3.0% 2.1%

1.9% 4.0% 1.8%

0.5% 0.4% 0.1% 2.6%

3.1% 6.8%

2.0% 3.9% 1.0%

5.5% 1.9% 3.8%

0.2% 1.2% 0.0%

22.3% 18.1% 1.2% 14.6% 2.2%

1.5% 0.9%

2.7% 0.2%

1,7% 19.5% 1.2% 1.9% 47.0%

3.2% 1.2% 1.7% 0.6%

12.2% 3.6% 4.0% 13.7% 9.5% 1.7% 1.0%

3.6% 0.9%

0.4% 3.0% 4.5% 4.1% 2.9%

5.3%

1.1% 1.2%

3.3. Household investment in 17 province in Indonesia Investment penetration score is significantly lower than saving account for both period. This could be implied that Indonesian tend to be a risk averse dominant or less financial literate. Financial product from capital market seems to be unfamiliar compare to property and direct investment Tahun 2009

Jawa-­‐Bali Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Bali

Share  Options

0.1%

0.0%

0.2%

0.1%

0.2%

0.0%

0.2%

Share  in  Ind Comp

0.0%

0.2%

0.1%

0.0%

0.2%

Share  in  Ind Comp-­‐not  listed

0.0%

0.1%

0.0%

0.6%

Int'l  shares Property  -­‐ not  your  own  home

0.0% 0.1%

0.1% 0.1%

0.0%

Investments

0.0%

Equity  in  Business

0.0%

Govt/Corp  Bonds

0.0%

Gold  Deposit

0.1%

0.1%

0.0%

0.0%

Money  Lent Futures

0.2%

0.2% 0.2%

0.1% 0.0%

0.0% 0.0%

Other  Direct  Investment

0.2%

0.1%

0.1%

0.0%

Total  DI  &  Inv  fund

0.6%

0.6%

0.5%

0.1%

Money  Market Bonds

0.1% 0.0%

0.1%

0.1%

Equity  

0.1%

0.0%

0.1% 0.2%

0.0%

0.1%

0.1%

0.1% 0.1% 0.1%

0.0% 0.0%

0.1% 0.1%

0.0%

0.2%

0.1%

1.2%

Unspecified  DI

0.0%

Total  Managed  funds Total  currently  have  invest

0.2% 0.7%

none

99.3%

can't  say

0.1%

0.1%

Balanced  Equity Other  Managed  Funds

0.2%

0.0%

0.0%

0.1% 0.7%

0.1% 0.5%

0.0% 0.1%

99.3%

99.5%

99.9%

0.0%

0.0%

0.0%

0.2%

0.2%

0.0% 0.1%

0.2% 1.3%

99.8%

99.9%

98.6% 0.1%

In 2010, for Jawa Bali area, Jawa Timur have relatively better investment penetration, although most of source of investment is direct investments Tahun 2010

Jawa  Bali Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Share  Options

0.1%

0.4%

0.1%

0.0%

0.1%

Share  in  Ind  Comp

0.0%

0.0%

0.0%

0.0%

Share  in  Ind  Comp-­‐not  listed

0.1%

Int'l  shares Property  -­‐ not  your  own  home

0.0% 0.2%

Equity  in  Business

0.0%

0.0%

Govt/Corp  Bonds

0.0%

0.0%

Gold  Deposit

0.1%

0.0%

0.1%

0.0%

0.0%

Money  Lent Futures

0.1% 0.1%

0.1%

0.2% 0.0%

0.0%

0.1%

Other  Direct  Investment

0.1%

0.0%

0.2%

Total  DI  &  Inv  fund

0.6%

0.5%

0.6%

0.1%

Money  Market Bonds

0.0%

0.1%

0.0%

0.0%

Bali

Investments

0.0% 0.0%

0.0% 0.1%

0.0% 0.1%

0.0%

0.0% 0.0%

0.9%

0.0%

1.3%

0.0%

Unspecified  DI

0.0%

Equity  

0.0%

0.0%

Balanced  Equity

0.0%

Other  Managed  Funds Total  Managed  funds Total  currently  have  invest none can't  say

0.0%

0.1%

0.1% 0.1% 1.3%

0.0%

98.7%

100.0%

0.0% 0.6%

0.1% 0.6%

0.1% 0.6%

0.1% 0.2%

99.3%

99.2%

99.2%

99.8%

99.6%

0.1%

0.2%

0.2%

0.0%

0.4%

Surprisingly, although Riau have lower population, its investment penetration is the highest which driven by property, money-lent and direct investment. Tahun 2009

Outer  Jawa Bali Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel

Investments Share  Options

0.0%

Share  in  Ind Comp Share  in  Ind Comp-­‐not  listed Int'l  shares Property  -­‐ not  your  own  home

0.0%

0.0%

0.0% 0.0%

0.1%

0.1%

Equity  in  Business Govt/Corp  Bonds

0.0%

Gold  Deposit Money  Lent

0.0% 0.0%

Futures Other  Direct  Investment

0.0%

Unspecified  DI Total  DI  &  Inv  fund

0.1%

0.0% 0.0%

0.0%

0.1%

Money  Market Bonds

0.0% 0.0%

0.0%

Equity   Balanced  Equity

0.0%

Other  Managed  Funds Total  Managed  funds

0.0%

0.3% 0.0%

0.0%

0.0% 0.0% 0.8% 0.0%

0.8%

7.3% 0.2%

0.8%

8.5% 0.2% 0.2%

0.0%

0.0%

Total  currently  have  invest

0.1%

0.0%

0.1%

0.8%

8.6% 0.2%

none

99.9%

99.7%

99.9%

99.2%

91.4% 99.7% 100.0% 100.0% 100.0%

0.2%

0.0%

can't  say

0.1%

0.1% 0.1%

For both Jawa-Bali and Outer Jawa Bali case, investment products comes from Indonesia stock exchange are low. The cause could be less familiarity with investment instrument, low financial literacy or probably lack of investment instrument campaign from the stock exchanges. 0,1% penetration level on Indonesia stock exchange means only around 24.000 people in Indonesia involved actively in stock exchange market, which probably could explain why Indonesia is not suffering from 2008 crisis due to less connected with stock exchange instruments. It seems direct investment which probably have relatively similar risk-return profile with stocks is more aspired for Indonesian people.

Tahun 2010

Outer  Jawa Bali Sumut

Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel Sulut

Investments Share  Options

0.1%

0.0%

0.1% 0.0%

Share  in  Ind  Comp

0.0%

0.0%

0.1%

0.0%

0.0%

0.2% 0.0%

0.0% 0.0%

0.0%

0.0%

0.0% 0.0%

Share  in  Ind  Comp-­‐not  listed Int'l  shares Property  -­‐ not  your  own  home

0.0% 0.3%

0.2%

0.1%

Equity  in  Business Govt/Corp  Bonds

0.0%

Gold  Deposit

0.0%

Money  Lent Futures

0.2%

Other  Direct  Investment

0.0% 0.0%

0.0% 0.1%

Unspecified  DI Total  DI  &  Inv  fund

0.0% 0.0%

0.0%

0.0%

0.2%

0.0%

0.7% 0.0% 0.0% 0.3%

9.0% 0.0% 0.2%

0.4%

10.1% 0.1% 0.2% 0.7% 1.0% 0.2%

0.0% 0.4%

0.3%

Money  Market Bonds

0.2%

0.0% 0.7% 0.2% 0.2% 0.6% 0.0%

0.0%

0.1% 0.0%

0.0% 0.0%

Equity  

0.0% 0.0%

0.0%

Balanced  Equity

0.0% 0.0%

0.0%

Other  Managed  Funds

0.4%

Total  Managed  funds Total  currently  have  invest

0.4% 0.8%

0.3%

none

99.2%

99.6% 99.8%

99.6% 89.9%92.5%99.7% 98.9%98.8% 98.9%

0.1%

0.0%

can't  say

0.0% 0.0% 0.0% 0.2%

0.4%

0.1% 0.0% 0.0% 0.0% 10.1% 0.1% 0.2% 0.7% 1.0% 0.2% 7.4% 0.1% 0.4% 0.2% 0.9%

3.4. Household Loans ownership in 17 province in Indonesia In Jawa Bali area, Household loans are dominated by motorcycle loans, personal loans and installment loans. Bali and Jawa Tengah have higher loan penetration compare other JawaBali area Tahun 2009

Jawa-­‐Bali Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Bali

1.1%

types  of  loans  currently  have loan  on  home  lived  in

0.0%

0.1%

0.0%

0.0%

loan  on  home  intended  to  live  in

0.0%

0.0%

0.0%

0.0%

loan  on  investment  property  

0.0%

0.0%

home  equity

0.0% 0.2%

0.1%

0.1%

0.4%

0.2%

0.0%

0.9%

0.0%

0.5%

0.5%

0.1%

2.1%

multipurpose  loans

0.2%

0.0%

3.0%

0.3%

1.9%

car  loan

0.0%

0.0%

0.0%

0.0%

3.3%

motor  cycle  loan

0.8%

1.8%

0.5%

1.7%

0.6%

5.1%

total  vehicles  loan

0.8%

1.8%

0.6%

1.7%

0.6%

8.2%

student/education  loan

0.1%

0.0%

0.2%

0.0%

2.1%

0.1%

0.4%

0.0%

0.9%

0.1%

0.9%

97.5%

98.8%

86.2%

0.2%

0.0%

0.3%

DIY

Jatim

Bali

0.2%

0.1%

home  improvement  loan total  home  loans personal  overdraft

installment  loan other  personal  loan

0.6%

0.3%

0.8%

0.2%

98.2%

99.5%

97.0%

95.8%

0.1%

0.1%

0.0%

Jakarta

Banten

Jabar

Jateng

0.1%

0.2%

0.1%

0.1%

0.0%

0.1%

0.2%

0.0%

loan  on  investment  property  

0.0%

0.0%

0.0%

0.0%

0.4%

home  equity

0.1%

0.8%

0.0%

1.0%

0.0%

0.1%

0.1%

4.8%

0.4%

6.2%

loan  unspecified

0.1%

none no  anwer

Tahun 2010

0.1%

Jawa Bali

types  of  loans  currently  have loan  on  home  lived  in loan  on  home  intended  to  live  in

home  improvement  loan

0.0%

total  home  loans

0.1%

0.1%

0.2%

1.2%

0.2%

multipurpose  loans

0.1%

0.2%

0.6%

5.8%

0.1%

car  loan

0.0%

0.0%

0.0%

0.0%

motor  cycle  loan

0.4%

0.1%

1.9%

2.9%

total  vehicles  loan

0.4%

0.1%

1.9%

2.9%

student/education  loan

0.1%

0.1%

0.3%

0.0%

0.0%

0.4%

0.3%

personal  overdraft

0.0%

installment  loan other  personal  loan

0.1%

loan  unspecified none no  anwer

2.2%

0.6%

0.0%

0.0%

0.1%

2.0%

2.1%

0.1%

2.0%

2.1%

0.0% 0.0%

0.0%

1.9%

0.8%

0.2%

0.0%

0.0%

0.1%

99.0%

99.3%

96.6%

89.5%

99.1%

94.5%

88.9%

0.2%

0.3%

0.3%

0.2%

0.4%

0.0%

0.0%

In Outer Jawa Bali, Riau have the highest loan penetration which driven by multipurpose loans, home loans and motor cylce loans. There also presense of motor cycle loans in several provinces. Outer  Jawa Bali

Tahun 2009

Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel

types  of  loans  currently  have loan  on  home  lived  in

0.5% 0.3%

loan  on  home  intended  to  live  in

0.0%

loan  on  investment  property  

0.0%

0.3% 0.0%

home  equity

0.0%

0.1%

0.0%

0.0% 0.2%

home  improvement  loan

0.0% 0.0%

total  home  loans

0.0%

personal  overdraft

0.0%

multipurpose  loans

0.0%

car  loan

0.0%

motor  cycle  loan total  vehicles  loan

0.0%

0.8% 0.5% 0.0%

4.1% 0.0%

0.0%

-­‐

2.3%

0.0%

2.7%

1.1%

0.3%

0.1%

2.3%

0.0%

2.8%

1.1%

0.3%

0.1%

0.1% 0.1%

0.1%

0.1%

0.3%

installment  loan 0.0%

loan  unspecified

0.1%

0.2%

97.6% 100.0 %

none no  anwer

99.8%

97.0% 94.1% 99.1% 99.5% 100.0% 99.8%

0.1%

Tahun 2010

0.0%

0.0%

student/education  loan other  personal  loan

0.2%

0.1%

0.0%

0.0%

Outer  Jawa Bali Sumut

Sumbar Sumsel Lampung

Riau

Kalbar

Kalsel Kaltim Sulsel

0.8%

0.0%

0.2%

0.1%

0.1%

0.0%

0.3%

0.1%

0.2%

0.0%

0.0%

0.1%

Sulut

types  of  loans  currently  have loan  on  home  lived  in

0.3%

loan  on  home  intended  to  live  in loan  on  investment  property  

0.1%

home  equity

0.0% 0.0%

0.0%

0.0%

0.0%

0.0% 0.0%

0.1%

0.0%

0.2%

0.1%

0.0%

0.1%

0.0%

0.1%

0.2%

0.0%

0.0%

0.1%

1.3%

0.2%

0.1%

0.7%

0.3%

0.0%

0.5%

2.0%

0.0%

0.0%

0.7%

1.8%

0.0%

0.0%

0.4%

0.0%

0.0%

0.0%

0.1%

0.1%

0.5%

0.9%

0.1%

0.6%

2.1%

0.8%

1.4%

0.2%

0.5%

1.3%

0.1%

0.6%

2.1%

0.9%

1.4%

0.0%

0.0%

0.4%

0.0%

0.0%

0.3%

2.8%

0.0%

home  improvement  loan

0.1%

0.1%

total  home  loans

0.4%

0.3%

multipurpose  loans

1.8%

0.1%

car  loan

2.2%

motor  cycle  loan

1.7%

0.4%

total  vehicles  loan

3.9%

0.4%

student/education  loan

0.3%

installment  loan

0.9%

other  personal  loan

4.9%

0.0%

loan  unspecified

0.1%

0.0%

personal  overdraft

none no  anwer

0.0%

88.5%

0.4% 0.0%

98.7% 0.6%

99.7%

98.8% 0.1%

0.1%

0.6%

0.0%

0.1%

0.2%

0.1%

0.1%

0.0%

94.3% 87.9% 99.1% 93.8% 96.6% 98.2% 0.5%

10.8%

0.1%

0.4%

0.3%

The cause of low loan penetration (less than 5% average) could be the culture of “having loans is a bad habit and a sign of less capability of financial management” or probably not enough financial education, which explain that several loans could be a good leverage for a household assets

3.5. Household ownership of insurance in 17 province in Indonesia Insurance penetration on average is still below 5% of total population. Bali has reach more than 10% of insurance penetration compare to other area. This could be a result of culturaly adapted insurance product, which explain that personal (life) insurance could help your family in executing expensive “Ngaben” (traditional commomeration after death). “Ngaben” is a part of Balinese culture, it could be said that good “ngaben” ceremony is reflecting better social status as well as better obidience toward cultures. Medical insurance penetration is also low, despite increasing healthcare costs. This could be caused by lack of financial literacy education, bad perception toward insurance and/or formal medication through doctors are not as aspired as traditional medical approaches. There is no significant changes on insurance ownership during 2009-2010.

Tahun 2009

Jawa-­‐Bali Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Bali

0.0%

0.0%

0.0%

0.1%

TYPES  OF  INSURANCE  COVER  PERSONALLY  HAVE Home  contents  insurance

0.1%

Home  buildings  insurance

0.1%

0.0% 0.2%

Extended  warranty  on  goods  (TV,PC,etc.)

0.0%

0.0%

0.0%

0.0%

Vehicle  insurance  -­‐ Total  Loss  Only

0.0%

0.4%

0.0%

0.0%

0.0%

Vehicle  insurance  -­‐ All  Risk

0.0%

0.0%

0.0%

0.0%

0.3%

0.0%

0.2%

Total  Vehicle  Insurance

0.0%

0.0%

0.4%

0.0%

0.3%

0.1%

0.2%

Other  home,  property  or  car  insurance

0.0%

0.0%

0.0%

Total  Home/Property/Car  Insurance

0.2%

0.2%

0.4%

0.0%

0.3%

0.1%

0.3%

Term  Life  Insurance  -­‐ Family  Income  Benefit

0.1%

1.9%

0.1%

0.2%

0.2%

0.1%

1.4%

Term  Life  Insurance

0.5%

0.5%

0.1%

0.1%

0.1%

0.2%

Endowments

0.0%

0.0%

0.0%

0.0%

0.0%

0.5%

Whole  of  life  policies

0.2%

0.0%

0.0%

0.0%

0.0%

Fixed  Annuity

0.0%

Variable  Annuity

0.0%

Other  life  insurance  or  annuities

0.0%

Total  Life  Insurance  and  Annuities

0.8%

Health  Insurance

1.3%

Critical  Illness  Insurance

0.0%

Accident  insurance  (other  than  car  or  life  insurance)

0.3%

0.0% 0.0%

0.1%

0.0%

0.3%

0.0%

0.2%

2.2%

0.3%

0.3%

0.6%

0.3%

10.2%

0.1%

0.1%

0.0%

0.1%

4.2%

0.0% 0.0%

0.0%

0.0% 0.0%

0.1%

0.6%

Tahun 2009

Jakarta 0.5%

Private  medical  insurance Dental  Insurance Long  Term  Care  insurance Job  loss   cover Travel  insurance

Jawa-­‐Bali Jabar Jateng 1.4% 2.3% 0.0% 0.0%

Banten 1.5%

0.0%

DIY Jatim 0.0% 1.1%

Bali 3.9%

0.0%

0.1%

Home  loan  payment  protection  insurance Other  Personal  insurance Total  Other  Personal  Insurance Total  Non  Life  Insurance

0.4% 2.3% 0.6%

1.6% 0.2%

0.2% 1.7% 0.6%

0.0% 2.3% 0.0%

0.2% 0.0% 1.4% 0.3% 0.2%

0.1% 8.6% 0.3%

Total  Personal  Accident  and  Health  Insurance

2.0%

1.6%

1.6%

2.3%

0.0% 1.3%

8.6%

TOTAL  Have  Any  Insurance No  Answer

3.0% 97.0%

3.8% 96.2%

2.1% 97.9%

2.6% 0.6% 1.8% 14.6% 97.4% 99.4% 98.2% 85.4%

CURRENTLY  OWN  SHARES Yes No No  Answer

0.3% 98.8% 1.0%

0.2% 0.2% 0.2% 0.2% 0.0% 0.1% 99.0% 99.4% 92.6% 98.0% 98.6% 78.7% 0.9% 0.4% 7.3% 1.8% 1.4% 21.3%

PROPERTIES  CURRENTLY  HAVE Own  Residence  (not  farm) Holiday  home Farm Residential   investment  property Other  investment  property Can't  Say

64.1% 0.1% 0.2% 0.4% 0.3% 35.8%

67.1% 0.0% 0.2% 0.1% 0.1% 32.7%

Tahun 2010

83.0% 0.5% 18.6% 0.6% 0.5% 17.0%

80.5% 13.7% 0.0% 2.8% 0.1% 0.0% 0.0% 19.4% 86.3%

73.7% 0.0% 1.7% 0.0% 1.7% 26.3%

56.3% 0.5% 10.3% 0.7% 0.2% 43.5%

Jawa-­‐Bali Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Bali

TYPES  OF  INSURANCE  COVER  PERSONALLY   HAVE Critical  Illness  Insurance

0.0%

Home  buildings  insurance

0.0%

0.1%

0.0%

0.1%

0.0%

Vehicle  insurance  -­‐ Total  Loss  Only

0.1%

0.0%

0.3%

0.0%

0.0%

Vehicle  insurance  -­‐ All  Risk

0.1%

0.1%

0.1%

0.0%

0.0%

Total  Vehicle  Insurance

0.1%

0.2%

0.4%

0.0%

0.0%

Other  home,  property  or  car  insurance

0.0%

0.1%

0.0%

0.1%

0.0%

Total  Home/Property/Car  Insurance

0.1%

0.5%

0.4%

0.2%

0.1%

Term  Life  Insurance  -­‐ Family  Income  Benefit

0.3%

1.1%

0.1%

0.3%

Term  Life  Insurance

0.6%

0.1%

0.3%

0.4%

Endowments

0.1%

0.0%

0.1%

0.0%

Whole  of  life  policies

0.0%

0.1%

0.0%

0.0%

Fixed  Annuity

0.0%

0.0%

0.0%

0.0%

Extended  warranty  on  goods  (TV,PC,etc.)

0.1% 0.3%

0.4%

1.4%

0.0%

1.3%

0.4%

0.1%

1.4%

0.1%

0.1%

Variable  Annuity

0.0%

Other  life  insurance  or  annuities

0.3%

0.0%

0.1%

0.4%

Total  Life  Insurance  and  Annuities

1.3%

1.3%

0.7%

1.1%

0.7%

0.2%

0.1%

0.8%

4.3%

Tahun 2010 Health  Insurance

Jawa-­‐Bali Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Bali

0.7%

0.2%

0.2%

0.1%

0.1%

0.3%

0.6%

0.0%

0.0%

0.1%

0.0%

1.1%

Critical  Illness  Insurance Accident  insurance  (other  than  car  or  life   insurance) Private  medical  insurance Dental  Insurance

0.1%

0.0%

0.1%

0.0%

0.1%

0.1%

0.2%

0.3%

0.5%

0.7%

1.6%

0.4%

0.5%

0.4%

0.1%

Long  Term  Care  insurance

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Job  loss  cover

0.0%

Travel  insurance Home  loan  payment  protection  insurance Other  Personal  insurance Total  Other  Personal  Insurance Total  Non  Life  Insurance Total  Personal  Accident  and  Health  Insurance TOTAL  Have  Any  Insurance No  Answer

0.0%

0.0%

0.0%

0.1%

0.3%

0.0%

0.4%

0.2%

1.4%

0.7%

1.2%

2.0%

0.4%

0.5%

0.8%

0.4%

1.2%

0.7%

0.9%

1.8%

0.4%

0.7%

2.3%

2.6%

2.2%

2.0%

3.2%

1.1%

1.7%

4.8%

97.4%

97.8%

98.0%

96.8%

98.9%

98.3%

95.2%

Tahun 2009

0.3% 0.4%

1.0%

2.3%

0.4%

Outer  Jawa Bali Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel

TYPES  OF  INSURANCE  COVER  PERSONALLY  HAVE Home  contents  insurance Home  buildings  insurance

0.1% 0.0%

0.0%

0.1%

0.0%

0.3% 1.4%

Extended  warranty  on  goods  (TV,PC,etc.)

0.0%

Vehicle  insurance  -­‐ Total   Loss   Only

0.0%

Vehicle  insurance  -­‐ All   Risk

0.0%

0.0%

0.0%

Total  Vehicle   Insurance

0.0%

0.0%

0.0% 0.1%

Other  home,  property  or  car  insurance

0.0% 0.1%

0.1%

Total  Home/Property/Car  Insurance

0.0%

0.1%

Term  Life  Insurance  -­‐ Family  Income  Benefit

0.0%

0.0%

Term  Life  Insurance

0.1%

0.1%

Endowments

0.0%

Whole  of  life  policies

0.0%

Fixed  Annuity

0.0% 0.1% 0.1%

0.1%

0.2%

0.1%

0.0%

0.0%

0.3% 1.5%

0.0%

0.1%

0.0% 0.1%

0.1%

0.2% 1.1%

0.0%

0.6% 0.1%

0.0%

0.0% 0.2%

Variable  Annuity Other  life  insurance  or  annuities

0.1%

0.2%

Total  Life  Insurance  and  Annuities

0.2%

0.5%

Health  Insurance

0.0%

0.0%

0.0% 0.1%

0.4%

0.2%

0.8% 1.6%

0.2%

0.1%

0.0% 0.1%

0.0%

0.1%

Critical  Illness   Insurance Accident  insurance  (other  than   car  or  life   insurance)

0.0%

0.1%

0.0%

Outer  Jawa Bali Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel 0.1% 0.4% 0.0% 0.5% 4.4% 0.4%

Tahun 2009 Private  medical  insurance Dental  Insurance Long  Term  Care  insurance Job  loss  cover Travel  insurance Home  loan  payment  protection  insurance Other  Personal  insurance Total  Other  Personal  Insurance Total  Non  Life  Insurance Total  Personal  Accident  and  Health  Insurance TOTAL  Have  Any  Insurance

0.1%

0.0% 0.2% 0.1% 0.2% 0.4%

No  Answer

0.0% 0.2% 0.1% 0.2% 0.7%

0.0% 0.7% 0.1% 0.6% 0.7%

0.3% 0.4% 0.3% 0.2% 0.5%

3.9% 4.4% 4.1% 0.5% 4.7%

0.1% 4.7% 1.7% 4.5% 7.6%

0.4% 0.0% 0.4% 0.4% 100.0 100.0% 99.6% %

99.6% 99.3% 99.3%

99.5% 95.3% 92.4%

Yes No No  Answer

0.7% 0.8% 99.2% 96.2% 99.3% 0.0% 3.0% 0.7%

0.4% 99.3% 68.9% 94.1% 91.7% 99.8% 99.4% 0.7% 30.6% 5.9% 8.3% 0.2% 0.6%

PROPERTIES  CURRENTLY  HAVE Own  Residence  (not  farm) Holiday  home Farm Residential  investment  property Other  investment  property Can't  Say

48.1% 0.0% 0.0% 0.2% 0.0% 51.9%

CURRENTLY  OWN  SHARES

Tahun 2010

84.8% 98.4% 100.0% 77.2% 93.4% 69.5% 71.8% 93.3% 0.8% 0.3% 0.2% 0.3% 17.1% 14.7% 0.8% 2.6% 44.1% 0.1% 0.2% 0.1% 0.0% 0.4% 0.2% 15.2% 1.6% 22.7% 6.5% 30.5% 28.2% 6.7%

Outer  Jawa Bali Sumut

Sumbar Sumsel Lampung

Riau

Kalbar Kalsel Kaltim Sulsel

0.1%

Sulut

TYPES  OF  INSURANCE  COVER   PERSONALLY  HAVE Home  contents  insurance Home  buildings  insurance Extended  warranty  on  goods   (TV,PC,etc.)

0.4%

0.0%

0.0%

0.0%

1.0%

0.1%

0.0%

0.0%

0.2%

0.1%

0.1%

0.0%

0.1%

0.0%

Vehicle  insurance  -­‐ Total  Loss  Only

0.2%

0.0%

0.0%

0.3%

0.0%

0.1%

Vehicle  insurance  -­‐ All  Risk

2.3%

0.1%

0.2%

0.1%

0.0%

0.5%

0.0%

Total  Vehicle  Insurance

2.5%

0.1%

0.2%

0.4%

0.0%

0.7%

0.0%

0.0%

0.0%

Other  home,  property  or  car   insurance Total  Home/Property/Car  Insurance Term  Life  Insurance  -­‐ Family  Income   Benefit Term  Life  Insurance

0.3% 3.2%

0.2%

0.3%

0.0%

1.4%

0.1%

1.0%

0.2%

0.1%

0.2%

1.0%

0.0%

2.3%

0.1%

0.4%

0.0%

1.5%

0.1%

Endowments

0.1%

0.0%

Whole  of  life  policies Fixed  Annuity

0.1%

0.0% 0.1%

0.0%

0.0%

0.0%

0.0%

0.1%

0.0%

Variable  Annuity

0.0%

0.1%

0.7%

0.2%

0.1%

0.5%

1.5%

0.5%

0.1%

0.1%

0.0%

0.6%

0.2%

0.7%

0.0%

0.1%

Other  life  insurance  or  annuities

0.5%

Total  Life  Insurance  and  Annuities

3.9%

0.2%

0.5%

0.0%

0.0%

0.0%

0.2%

2.8%

0.1%

0.1%

0.0%

0.0%

1.5%

1.9%

0.7%

Tahun 2010 Health  Insurance

Outer  Jawa Bali Sumut 0.4%

Sumbar Sumsel Lampung 0.4%

Critical  Illness  Insurance Accident  insurance  (other  than  car  or   life  insurance) Private  medical  insurance

0.1%

0.1%

Riau

Kalbar

0.5%

0.1%

Kalsel Kaltim Sulsel 0.5%

0.0% 0.1% 1.9%

0.0% 0.6%

0.2%

0.2%

0.0%

0.6%

0.0%

0.1%

Sulut

1.2%

0.3%

0.1%

0.0%

0.4%

0.0%

0.1%

0.2%

0.3%

0.7%

0.1%

0.2%

Dental  Insurance Long  Term  Care  insurance

0.0%

0.0%

Job  loss  cover Travel  insurance Home  loan  payment  protection   insurance Other  Personal  insurance Total  Other  Personal  Insurance Total  Non  Life  Insurance Total  Personal  Accident  and  Health   Insurance TOTAL  Have  Any  Insurance No  Answer

0.0%

0.0%

0.5%

0.1%

0.0%

0.0%

1.7%

0.0%

0.1%

0.2%

2.9%

1.2%

0.2%

0.2%

3.0%

0.1%

0.7%

1.7%

0.8%

0.7%

3.7%

0.3%

0.3%

0.1%

2.3%

0.1%

0.1%

0.7%

0.4%

0.1%

2.4%

1.1%

0.2%

0.1%

1.3%

0.1%

0.6%

1.7%

0.6%

0.7%

9.4%

1.4%

1.0%

0.3%

4.8%

0.3%

0.9%

3.1%

2.3%

1.5%

90.6%

98.6%

99.0%

99.7%

95.2% 99.7% 99.1% 96.9% 97.7% 98.5%

3.6. Household plastic card ownership Unlike insurance and investment product, plastic (credit card) ownership is relatively high with penetration level similar with saving account. It is consistent for both period and area Tahun 2009

Jakarta

Banten

Jabar

5.1% 15.9% 23.3% 24.3% 4.0% 37.7%

4.2% 6.7% 9.0% 14.8% 10.1%

20.3% 21.8% 25.2% 29.3% 72.7% 21.4%

6.5% 25.6% 28.6% 9.3% 2.8% 6.0%

5.2% 10.3% 9.1% 6.0% 3.0% 2.1%

22.6% 5.1% 27.0% 23.0% 18.7% 2.3%

Jakarta

Banten

none one two three four five  or  more

5.2% 13.8% 20.4% 22.2% 37.7% 1.6%

own  or  use  a  mobile  phone a  GSM  Phone a  C DMA  Phone GSM  and  C DMA  Phone total  own  or  use total  do  not  own  or  use can't  say

5.8% 24.0% 23.0% 7.9% 2.6% 5.2%

Jawa-­‐Bali Jateng

DIY

Jatim

Bali

18.4% 5.1% 5.1% 0.8% 0.3% 1.0%

2.0% 2.4% 0.1%

20.7% 21.7% 22.6% 25.8% 4.6% 4.2%

1.7% 4.2% 4.9% 2.9% 19.3%

2.3% 3.0% 2.1% 2.5% 1.5% 2.6%

22.0% 20.2% 15.3% 22.0% 19.9% 13.0%

2.7% 5.1% 5.0% 3.1% 0.9% 3.0%

Jabar

16.1% 25.7% 5.2% 14.0% 20.1% 35.4% Jawa Bali Jateng

DIY

Jatim

Bali

4.3% 5.1% 6.8% 2.6% 0.0% 0.9%

20.3% 20.2% 21.1% 24.7% 5.2% 2.1%

18.0% 10.0% 8.8% 7.1% 10.1% 0.1%

2.0% 1.7% 2.5% 1.2%

20.5% 22.0% 21.8% 32.8% 41.5% 48.1%

1.8% 3.1% 1.4%

3.8% 9.4% 7.1% 4.6% 3.9% 4.1%

20.9% 28.7% 29.4% 21.7% 16.8% 42.9%

17.1% 5.7% 7.7% 15.7% 20.3% 17.9%

2.5% 2.1% 1.5% 2.5% 1.1% -­‐

19.9% 19.0% 17.5% 19.9% 22.6% 4.0%

2.4% 2.5% 1.6% 2.5% 1.0% 0.3%

number  of  plastic  card  now  have none one two three four five  or  more own  or  use  a  mobile  phone a  GSM  Phone a  C DMA  Phone GSM  and  C DMA  Phone total  own  or  use total  do  not  own  or  use can't  say Tahun 2010 number  of  plastic  card  now  have

Tahun 2009

Sumut

Sumbar

Sumsel

6.4% 1.8% 0.6% 0.5% 2.1% 16.4%

2.3% 2.3% 2.8% 0.4% 3.9%

3.7% 2.1% 0.8% 1.0%

3.6% 1.0% 1.0% 3.2% 8.6% 4.0%

1.6% 0.2% 0.3% 1.3% 3.2% 0.3%

1.7% 1.4% 0.6% 1.7% 5.4% 1.6%

Outer  Jawa Bali Lampung Riau

Kalbar

Kalsel

Kaltim

Sulsel

1.8% 5.6% 0.5% 0.0%

1.6% 2.0% 0.3%

1.2% 4.8% 0.2%

4.4% 0.9% 0.0%

number  of  plastic  card  now  have none one two three four five  or  more own  or  use  a  mobile  phone a  GSM  Phone a  C DMA  Phone GSM  and  C DMA  Phone total  own  or  use total  do  not  own  or  use can't  say

3.6% 2.5% 4.2% 0.3% 2.1%

2.7% 0.1% 0.3%

5.1% 0.5% 0.8% 4.4% 2.9% 0.1%

4.4% 0.6% 1.8% 3.8% 1.1% 14.9%

0.3%

2.7% 0.8% 1.4% 2.4% 1.3% 9.2%

1.4% 0.3% 0.9% 1.2% 2.1% 1.5%

1.0% 1.3% 0.4% 1.1% 1.7% 0.2%

1.1% 0.9% 0.5% 1.1% 6.8% 3.9%

Outer  Jawa Bali

Tahun 2010

Sumut

Sumbar

Sumsel Lampung

2.1% 5.2% 2.3% 0.4%

3.6% 2.9% 2.3% 0.9% 2.1% 5.1%

6.2% 3.9% 1.6% 0.7% 2.7% 2.0%

3.6% 1.5% 1.1% 0.4%

2.3% 1.2% 1.0% 2.2% 6.0% 1.8%

5.5% 1.1% 1.1% 5.1% 7.9% 0.3%

4.3% 1.0% 1.7% 3.9% 3.0% 0.9%

Riau

Kalbar

Kalsel

Kaltim

Sulsel

Sulut

2.7% 0.6% 1.0% 0.2%

2.0% 0.8% 0.7%

1.7% 0.8% 0.3%

1.2% 4.0% 3.8% 1.6% 0.7% 6.2%

4.2% 3.5% 3.4% 2.6%

1.1% 1.4% 1.7% 5.4%

1.5% 1.0% 1.3% 1.4% 2.0% 1.6%

1.6% 0.4% 0.8% 1.5% 0.9% 7.3%

3.2% 1.5% 2.2% 3.0% 6.1% 3.6%

1.6% 0.7% 1.4% 1.5% 0.5% 3.5%

number  of  plastic  card  now  have none one two three four five  or  more own  or  use  a  mobile  phone a  GSM  Phone a  C DMA  Phone GSM  and  C DMA  Phone total  own  or  use total  do  not  own  or  use can't  say

2.6% 0.5% 0.8% 2.3% 2.2% 0.0%

0.0% 33.8% 3.7% 0.8% 1.8% 3.3% 1.3% 5.2%

2.0% 0.6% 0.9% 1.8% 2.0% 3.3%

3.7. Household Financial attitude From Financial attitude score, it could be inferred that Indonesia consumers have low level of disagree (inconfidence) toward economy and life. This findings are consistent with Nielsen and central bank of Indonesia consumer confidence survey. Tahun 2009

Jawa-­‐Bali Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Bali

Credit  enables  me  to  buy  the  things  that  I  want

5.1%

4.7%

21.2%

15.7%

1.5% 26.7%

1.8%

I  like  to  be  fully  insured

5.5%

3.9%

20.7%

18.8%

0.7% 29.8%

1.8%

Recently  I've  cut  down  my  spending

7.3%

3.6%

14.9%

24.7%

1.2% 25.3%

2.0%

The  Indonesian  economy  appears  to  be  improving

5.1%

5.2%

25.5%

21.3%

2.7% 14.6%

1.5%

I  feel  financially  stable  at  the  moment

5.7%

5.2%

27.7%

16.2%

1.8% 16.6%

1.7%

I'm  worried  about  interest  rates  at  the  moment

5.6%

5.7%

20.8%

18.0%

0.9% 29.7%

1.4%

It  would  be  ideal  if  I  could  conduct  all  my  banking  without  ever   having  to  go  to  a  branch

5.7%

3.3%

21.9%

14.9%

0.8% 32.4%

1.5%

I  prefer  to  invest  in  something  with  a  safe  return

6.9%

1.3%

32.6%

13.5%

1.8% 17.1%

2.8%

Single  14-­‐34  No  Children

6.8%

5.3%

20.5%

11.9%

2.5% 20.5%

2.7%

Single  14-­‐34  Children

3.6%

1.7%

5.3%

27.2%

Married  14-­‐34  no  children

6.2%

5.8%

18.5%

16.8%

1.7% 17.4%

3.1%

Married  14-­‐34  children

7.0%

5.4%

24.5%

18.9%

1.2% 19.6%

1.0%

Married  35+  children

4.8%

4.1%

19.9%

22.0%

2.2% 19.4%

0.7%

Married  35+  no  children

4.5%

2.5%

20.0%

18.9%

2.0% 23.2%

3.0%

Single  35+  children

5.0%

1.4%

16.2%

29.4%

3.2% 18.4%

0.7%

Single  35+  no  children

4.8%

1.3%

13.5%

10.0%

1.4% 42.6%

1.8%

Finance  Disagree

Life-­‐Cycle

-­‐

7.8%

0.9%

Tahun 2010

Jawa-­‐Bali Jakarta

Banten

Jabar

Jateng

DIY

Jatim

Bali

Credit  enables  me  to  buy  the  things  that  I  want

5.5%

4.6%

20.4%

16.9%

1.9%

22.9%

2.0%

I  like  to  be  fully  insured

4.9%

3.0%

20.2%

16.8%

1.4%

27.0%

2.1%

Recently  I've  cut  down  my  spending

5.8%

4.8%

19.5%

18.2%

1.2%

24.8%

1.7%

5.4%

4.8%

25.8%

19.2%

2.0%

18.4%

1.6%

5.3%

4.6%

25.6%

17.0%

1.4%

18.7%

1.7%

5.1%

5.2%

19.3%

17.5%

2.1%

26.0%

1.9%

5.3%

4.4%

19.4%

16.2%

1.4%

25.8%

1.9%

7.2%

3.7%

20.5%

16.2%

1.0%

19.6%

2.1%

Single  14-­‐34  No  Children

6.8%

5.0%

20.5%

14.2%

1.7%

19.2%

1.5%

Single  14-­‐34  Children

9.7%

4.3%

16.3%

22.5%

0.9%

5.9%

0.1%

Married  14-­‐34  no  children

7.5%

6.5%

23.0%

13.4%

1.4%

16.2%

3.5%

Married  14-­‐34  children

6.1%

4.1%

21.4%

18.9%

1.8%

21.4%

1.8%

Married  35+  children

5.0%

4.7%

22.8%

19.5%

2.2%

19.2%

1.2%

Married  35+  no  children

4.1%

2.7%

16.1%

19.8%

2.1%

25.4%

3.1%

Single  35+  children

7.7%

4.9%

21.7%

16.4%

3.2%

13.2%

2.0%

Single  35+  no  children

5.1%

2.1%

13.9%

14.3%

3.1%

26.8%

1.8%

Finance  Disagree

The  Indonesian  economy  appears  to  be   improving I  feel  financially  stable  at  the  moment I'm  worried  about  interest  rates  at  the  moment It  would  be  ideal  if  I  could  conduct  all  my   banking  without  ever  having  to  go  to  a  branch I  prefer  to  invest  in  something  with  a  safe   return Life-­‐Cycle

Tahun 2009

Jawa-­‐Bali Sumut

Sumbar

Credit  enables  me  to  buy  the  things  that  I  want

4.3%

2.3%

I  like  to  be  fully  insured

4.2%

2.6%

Recently  I've  cut  down  my  spending

5.8%

The  Indonesian  economy  appears  to  be  improving

6.8%

I  feel  financially  stable  at  the  moment I'm  worried  about  interest  rates  at  the  moment

Sumsel Lampung

Riau

Kalbar

Kalsel

Kaltim

Sulsel

3.3%

1.9% 0.4% 1.5% 2.5%

1.7%

5.5%

4.9%

1.3% 0.4% 0.7% 2.8%

0.9%

1.1%

3.3%

2.7%

3.3% 0.2% 0.4% 3.0%

1.0%

1.3%

2.0%

5.4%

5.8% 0.5% 1.3% 0.8%

0.7%

0.9%

6.3%

2.0%

3.7%

5.1% 0.5% 1.3% 0.5%

0.8%

4.8%

4.3%

2.1%

5.3%

2.1% 0.4% 1.1% 0.4%

0.9%

1.2%

It  would  be  ideal  if  I  could  conduct  all  my  banking  without   5.7% ever  having  to  go  to  a  branch

2.1%

5.1%

2.2% 0.5% 1.1% 0.6%

0.7%

1.4%

I  prefer  to  invest  in  something  with  a  safe  return

4.6%

5.2%

6.1%

2.5% 0.5% 0.9% 1.7%

1.3%

1.2%

Single  14-­‐34  No  Children

8.3%

2.8%

4.1%

2.9% 3.2% 2.6% 1.9%

1.6%

2.5%

Single  14-­‐34  Children

0.7%

0.3%

0.9%

3.8% 0.9% 1.4% 0.1%

0.3% 45.1%

Married  14-­‐34  no  children

5.1%

2.0%

6.3%

7.2% 3.3% 3.8% 0.8%

1.0%

1.0%

Married  14-­‐34  children

4.1%

1.1%

2.4%

4.2% 3.0% 1.6% 1.9%

1.1%

2.9%

Married  35+  children

5.4%

1.3%

4.6%

2.9% 2.4% 1.5% 2.6%

1.6%

4.5%

Married  35+  no  children

7.4%

4.4%

2.0%

4.1% 1.4% 1.8% 0.4%

Single  35+  children

3.5%

1.5%

7.4%

1.4% 0.4% 0.1% 2.9%

0.7%

8.4%

Single  35+  no  children

3.8%

2.7%

5.8%

0.7% 2.7% 1.2% 0.3%

1.8%

7.3%

Finance  Disagree

Life-­‐Cycle

2.7%

Tahun 2010

Jawa-­‐Bali Sumut

Sumbar

Credit  enables  me  to  buy  the  things  that  I  want

2.2%

3.3%

I  like  to  be  fully  insured

2.7%

Recently  I've  cut  down  my  spending

2.2%

The  Indonesian  economy  appears  to  be  improving I  feel  financially  stable  at  the  moment

Sumsel Lampung

Riau

Kalbar

Kalsel

Kaltim

Sulsel

4.7%

3.6% 1.4% 1.6% 1.7%

1.3%

5.7%

4.4%

5.2%

3.3% 1.3% 2.0% 2.0%

1.2%

2.2%

3.7%

6.6%

1.8% 2.0% 1.0% 2.0%

0.9%

3.3%

2.3%

3.0%

6.1%

3.9% 1.7% 1.1% 1.2%

0.6%

2.4%

2.3%

3.1%

5.2%

4.4% 2.0% 1.3% 1.4%

0.7%

4.8%

2.3% It  would  be  ideal  if  I  could  conduct  all  my  banking  without   ever  having  to  go  to  a  branch 2.1%

3.1%

4.3%

3.3% 1.6% 2.4% 1.6%

1.0%

3.0%

3.3%

6.4%

3.9% 1.5% 2.1% 1.8%

0.8%

3.2%

I  prefer  to  invest  in  something  with  a  safe  return

2.0%

3.4%

7.0%

3.3% 2.4% 3.6% 2.2%

1.3%

3.8%

Single  14-­‐34  No  Children

2.7%

4.6%

7.9%

3.7% 2.9% 1.8% 1.4%

1.6%

3.9%

Single  14-­‐34  Children

0.9%

0.7%

2.2%

0.5% 2.0% 1.2% 6.7%

1.2% 24.6%

Married  14-­‐34  no  children

0.8%

3.0%

4.3%

6.1% 4.3% 2.0% 2.8%

1.0%

2.7%

Married  14-­‐34  children

1.4%

3.2%

4.7%

3.5% 2.3% 2.6% 1.4%

1.4%

3.5%

Married  35+  children

2.0%

3.0%

7.1%

2.6% 1.5% 1.4% 1.0%

1.8%

4.3%

Married  35+  no  children

2.8%

3.0%

4.9%

4.2% 3.0% 2.3% 2.0%

0.9%

3.0%

Single  35+  children

5.2%

7.7%

2.8%

0.6% 2.4% 0.9% 4.2%

0.1%

6.7%

Single  35+  no  children

4.2%

6.5%

3.7%

2.0% 4.2% 1.2% 2.7%

0.5%

6.8%

Finance  Disagree

I'm  worried  about  interest  rates  at  the  moment

Life-­‐Cycle

4. Conclusion Although Indonesian Economy is improving, the consumer confidence is high, it does not necessarily create the Indonesia financial sectors having better penetration level. Case of Balinese higher penetration insurance product, Tabunganku high presence in Kalimantan & sulawesi area (but low in Sumatra area) and higher direct investment penetration compare to capital/stock market penetration could be a results of there are a gap between supply and demand on financial services in Indonesia. Gap is not necessarily deals with purchasing power since from the BPS & worldbank data, Indonesia GDP per capita is already reach lower middle income countries. Gap could be a result of culture and communications.

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12.

13. 14. 15. 16. 17. 18.

19. 20. 21. 22.

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