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 : Poverty, Inequality and Inter-regional Disparity, Regional Development Issues in Southeast
Asia and the Pacific
Keywords : 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 Index Score

Account used to receive remittances (% age 15+) 6,135895
ATM is main mode of withdrawal (% with an account, age 15+) 51,14214
ATM is main mode of withdrawal, rural (% with an account, age 15+) 38,53819
ATM is main mode of withdrawal, urban (% with an account, age 15+) 70,86497
Loan from family or friends in the past year (% age 15+) 42,30019
Loan from family or friends in the past year, rural (% age 15+) 40,65272
Loan from family or friends in the past year, urban (% age 15+) 46,89446
Outstanding loan for health or emergencies (% age 15+) 18,69665
Outstanding loan for health or emergencies, rural (% age 15+) 18,5382
Outstanding loan for health or emergencies, urban (% age 15+) 19,13849
Outstanding loan to pay school fees (% age 15+) 10,72128
Outstanding loan to pay school fees, rural (% age 15+) 10,74457
Outstanding loan to pay school fees, urban (% age 15+) 10,6563
Saved any money in the past year (% age 15+) 40,50316
Saved any money in the past year, rural (% age 15+) 37,2327
Saved any money in the past year, urban (% age 15+) 49,62347
Saved at a financial institution in the past year (% age 15+) 15,28832
Saved at a financial institution in the past year, rural (% age 15+) 12,54505
Saved at a financial institution in the past year, urban (% age 15+) 22,93844
Saved for emergencies in the past year (% age 15+) 33,78782
Saved for emergencies in the past year, rural (% age 15+) 30,71613
Saved for emergencies in the past year, urban (% age 15+) 42,35378
Saved using a savings club in the past year (% age 15+) 13,86014
Saved using a savings club in the past year, rural (% age 15+) 12,41798
Saved using a savings club in the past year, urban (% age 15+) 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.

Jawa Bali
Tahun 2009
Jakarta Banten Jabar Jateng DIY Jatim Bali
Average  Household  LC
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%
Average  Household  SES
>  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%

Jawa  Bali
Tahun 2010
Jakarta Banten Jabar Jateng DIY Jatim Bali
Average  Household  LC
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%
Average  Household  SES
>  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%
 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%
Average  Household  SES
>  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% 4.0% 0.0% 2.1% 1.7% 0.8% 0.9% 0.1%

Outer  Jawa Bali

Tahun 2010
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%
Average  Household  SES
>  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%
 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 jawa-
Bali

Jawa-­‐Bali
Tahun 2009
Jakarta Banten Jabar Jateng DIY Jatim Bali
Savings
Savings  account 20.5% 16.4% 11.2% 20.2% 13.1% 15.8% 32.2%
Current  account 0.0% 0.1% 0.0% 0.0%
Term  Deposit 0.0% 0.2% 0.0% 0.0% 0.1% 3.2%
Junior  Account 0.0% 0.0% 0.0% 0.2%
Education  savings 0.1% 0.0% 0.0% 0.0%
Syariah 0.0% 0.1% 0.1% 0.0% 0.0% 6.1%
Foreign  Currency 0.0% 2.9% 0.0%
Other  Current 0.0% 0.1% 0.0% 0.2%
Account  unspecified 0.0% 0.0% 0.1%
TOTAL  Have  Account 20.5% 16.4% 11.3% 20.3% 16.0% 15.8% 35.7%
None 79.4% 83.4% 88.7% 79.7% 84.0% 84.2% 64.0%
can't  say 0.1% 0.1% 0.0% 0.0% 0.3%

Jawa  Bali
Tahun 2010
Jakarta Banten Jabar Jateng DIY Jatim Bali
Savings
Regular/Basic  Savings  Account  (revised  Jul10) 25.2% 13.5% 14.5% 20.4% 21.8% 20.3% 33.6%
Premium/Plus  Savings  Account  (from  Jul10) 0.2% 0.3% 0.0% 0.2%
TabunganKu  (from  Jul10) 0.0% 0.0% 0.0% 0.0% 0.5%
Total  Savings  account 25.3% 13.6% 14.5% 20.5% 21.8% 20.4% 33.8%
Current  account 0.2% 0.1% 0.0% 0.0% 0.1% 0.0%
Term  Deposit 0.2% 0.1% 0.1% 0.1% 0.5% 0.1% 1.4%
Junior  Account 0.0% 0.0% 0.0% 0.2% 0.1% 0.0%
Education  savings 0.1% 0.0% 0.1% 0.1% 0.1% 0.1%
Syariah 0.2% 0.2% 0.1% 0.1%
Foreign  Currency 0.0% 0.0% 0.0% 0.0%
Other  Current 0.0% 0.2% 0.1% 0.0% 0.1%
Account  unspecified 0.0% 0.0%
TOTAL  Have  Account 25.5% 13.7% 14.9% 20.8% 21.8% 20.4% 33.8%
None 74.4% 86.0% 84.7% 78.9% 77.8% 79.5% 66.1%
can't  say 0.2% 0.3% 0.4% 0.3% 0.4% 0.1% 0.0%

Outer  Jawa Bali

Tahun 2009
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel
Savings
Savings  account 2.7% 11.2% 5.3% 5.7% 34.6% 26.0% 34.1% 33.6% 12.3%
Current  account 0.0% 0.0%
Term  Deposit 0.1%
Junior  Account 0.0% 0.1% 0.3%
Education  savings 0.0% 0.0%
Syariah 0.0% 5.3% 0.4% 0.2%
Foreign  Currency
Other  Current 0.0% 0.0% 0.1%
Account  unspecified 0.2% 0.1% 0.2%
TOTAL  Have  Account 2.7% 11.2% 5.3% 5.7% 36.9% 26.4% 34.3% 33.6% 12.5%
None 97.3% 88.8% 94.5% 94.3% 63.1% 73.6% 65.7% 66.2% 87.5%
can't  say 0.1% 0.1% 0.2% 0.0%
 Outer  Jawa Bali
Tahun 2010 Lampun
Sumut SumbarSumsel Riau Kalbar Kalsel Kaltim Sulsel Sulut
g
Savings
Regular/Basic  Savings  Account  (revised  Jul10) 24.9% 9.9% 9.7%
10.0% 40.3%11.7%13.4%47.4% 17.9%16.0%
Premium/Plus  Savings  Account  (from  Jul10) 0.2% 1.8% 0.1% 0.0% 2.8%
TabunganKu (from  Jul10) 0.0% 0.0% 0.6% 0.5% 0.0% 1.0%
Total  Savings  account 25.0% 9.9% 9.7% 10.9% 40.3%11.7%13.8%48.8% 17.9%17.0%
Current  account 0.1% 0.1% 0.0% 0.0% 0.0% 0.4% 0.0%
Term  Deposit 0.4% 0.1% 0.1% 0.0% 0.2% 0.4% 0.0%
Junior  Account 0.5% 0.0% 0.1% 0.0% 0.4% 0.1% 0.9% 0.2%
Education  savings 0.1% 0.0% 0.0% 0.0% 0.0% 0.1% 0.4% 0.0%
Syariah 1.1% 0.1% 0.1% 0.0% 1.5% 0.1% 0.0% 0.3% 2.6% 1.3%
Foreign  Currency 0.0%
Other  Current 0.0% 0.0% 0.1% 0.0%
Account  unspecified 0.1% 0.0% 0.0%
TOTAL  Have  Account 25.1% 9.9% 9.9% 10.9% 40.7%12.0%14.2%49.2% 20.4%18.0%
None 74.9% 89.9% 90.1% 89.0% 58.7%78.8%85.7%50.8% 79.3%82.0%
can't  say 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
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% 6.4% 9.6% 0.4% 17.6% 57.0%
Junior  Account 5.2% 0.6% 2.6% 31.6%
Education  savings 50.2% 0.2% 43.5% 4.5%
Syariah 0.3% 3.8% 6.9% 0.1% 0.2% 39.0%
Foreign  Currency 0.2% 90.3% 9.5%
Other  Current 20.6% 48.2% 12.3% 8.3%
Account  unspecified 0.9% 13.6% 8.4%
TOTAL  Have  Account 7.5% 4.5% 14.5% 22.5% 2.0% 20.6% 4.3%
None 5.5% 4.3% 21.5% 16.7% 2.0% 20.8% 1.4%
can't  say 25.7% 17.8% 7.9% 1.3% 18.2%
 Jawa-­‐Bali
Tahun 2010
Jakarta Banten Jabar Jateng DIY Jatim Bali
own  or  use  a  mobile  phone
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%
Savings

Regular/Basic  Savings  Account  (revised  Jul10) 7.9% 3.1% 15.8% 19.1% 2.3% 22.5% 3.4%
Premium/Plus  Savings  Account  (from  Jul10) 7.1% 6.5% 0.4% 23.5%
TabunganKu  (from  Jul10) 1.6% 15.5% 0.8% 13.4% 15.6%
Total  Savings  account 7.8% 3.1% 15.7% 19.1% 2.3% 22.4% 3.4%
Current  account 20.7% 9.7% 3.4% 1.9% 22.8% 1.5%
Term  Deposit 9.7% 1.6% 10.7% 17.3% 7.3% 15.9% 17.5%
Junior  Account 0.5% 0.8% 6.0% 33.9% 2.4% 2.4%
Education  savings 7.8% 0.2% 19.6% 25.4% 2.1% 18.9%
Syariah 4.6% 17.4% 4.5% 4.8%
Foreign  Currency 6.3% 89.4% 0.9% 2.5%
Other  Current 1.5% 61.1% 21.4% 7.4% 1.6%
Account  unspecified 68.1% 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%

Outer  Jawa-­‐Bali
Tahun 2009
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel
own  or  use  a  mobile  phone
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% 0.3% 0.6% 0.8% 1.8% 1.4% 0.9% 0.4% 0.5%
total  own  or  use 3.2% 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
Savings  account 1.0% 1.6% 1.2% 1.3% 5.7% 3.2% 3.6% 3.0% 3.3%
Current  account 13.3% 0.3%
Term  Deposit 7.3%
Junior  Account 0.8% 10.9% 48.1%
Education  savings 1.6% 0.1%
Syariah 0.0% 45.8% 2.7% 1.3%
Foreign  Currency
Other  Current 2.3% 1.2% 7.1%
Account  unspecified 8.4% 3.6% 6.8% 48.7%
TOTAL  Have  Account 1.0% 1.6% 1.2% 1.3% 3.2% 1.3% 2.9% 3.3%
None 7.1% 2.4% 4.1% 4.0% 1.9% 1.7% 1.1% 4.4%
can't  say 15.4% 4.4% 18.2% 8.0% 1.2%
 Outer  Jawa-­‐Bali
Tahun 2010
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel Sulut
own  or  use  a  mobile  phone
a  GSM  Phone 2.6% 2.3% 5.5% 4.3% 3.7% 2.0% 1.5% 1.6% 3.2% 1.6%
a  CDMA  Phone 0.5% 1.2% 1.1% 1.0% 0.8% 0.6% 1.0% 0.4% 1.5% 0.7%
GSM  and  CDMA  Phone 0.8% 1.0% 1.1% 1.7% 1.8% 0.9% 1.3% 0.8% 2.2% 1.4%
total  own  or  use 2.3% 2.2% 5.1% 3.9% 3.3% 1.8% 1.4% 1.5% 3.0% 1.5%
total  do  not   own  or  use 2.2% 6.0% 7.9% 3.0% 1.3% 2.0% 2.0% 0.9% 6.1% 0.5%
can't  say 0.0% 1.8% 0.3% 0.9% 5.2% 3.3% 1.6% 7.3% 3.6% 3.5%
Savings
Regular/Basic  Savings  Account  (revised  
3.0% 1.9% 3.1% 1.9% 5.5% 1.2% 1.2% 3.5% 4.0% 1.0%
Jul10)
Premium/Plus  Savings  Account  (from  
3.0% 36.2% 0.9% 0.0% 22.3%
Jul10)
TabunganKu  (from  Jul10) 2.2% 0.2% 18.1% 12.2% 0.1% 20.3%
TotalSavings  account 3.0% 1.9% 3.1% 2.0% 5.5% 1.2% 1.2% 3.6% 4.0% 1.0%
Current  account 6.2% 15.2% 1.1% 2.8% 0.0% 14.6% 0.0%
Term  Deposit 6.8% 2.0% 4.0% 0.2% 2.2% 4.0% 0.7%
Junior  Account 12.7% 1.0% 6.1% 0.5% 10.4% 1.5% 13.7% 8.1%
Education  savings 4.5% 2.4% 3.2% 0.4% 0.9% 2.7% 9.5% 2.3%
Syariah 8.9% 1.0% 2.3% 0.1% 13.3% 0.9% 0.2% 1.7% 37.5% 5.3%
Foreign  Currency 1.0%
Other  Current 2.2% 2.6% 1,7% 0.4%
Account  unspecified 19.5% 3.2% 3.0%
TOTAL  Have  Account 3.0% 1.9% 3.1% 2.0% 5.5% 1.2% 1.2% 3.6% 4.5% 1.1%
None 2.1% 4.0% 6.8% 3.9% 1.9% 1.9% 1.7% 0.9% 4.1% 1.2%
can't  say 1.8% 1.0% 3.8% 47.0% 0.6% 2.9%

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

Jawa-­‐Bali
Tahun 2009
Jakarta Banten Jabar Jateng DIY Jatim Bali
Investments
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 0.0% 0.1% 0.1%
Property  -­‐ not  your  own  home 0.1% 0.0% 0.1% 0.0% 0.0% 0.2%
Equity  in  Business 0.0% 0.0% 0.1%
Govt/Corp  Bonds 0.0% 0.1% 0.1%
Gold  Deposit 0.1% 0.1% 0.0% 0.0% 0.1%
Money  Lent 0.2% 0.2% 0.1% 0.0% 0.1% 0.0% 0.1%
Futures 0.2% 0.0% 0.0% 0.0% 0.1%
Other  Direct  Investment 0.2% 0.1% 0.1% 0.0% 0.0% 0.2%
Unspecified  DI
Total  DI  &  Inv  fund 0.6% 0.6% 0.5% 0.1% 0.2% 0.1% 1.2%
Money  Market 0.1% 0.1% 0.1% 0.1%
Bonds 0.0%
Equity   0.1% 0.1%
Balanced  Equity 0.0% 0.0%
Other  Managed  Funds 0.0% 0.0% 0.2%
Total  Managed  funds 0.2% 0.1% 0.1% 0.0% 0.0% 0.2%
Total  currently  have  invest 0.7% 0.7% 0.5% 0.1% 0.2% 0.1% 1.3%
none 99.3% 99.3% 99.5% 99.9% 99.8% 99.9% 98.6%
can't  say 0.0% 0.0% 0.1%
 In 2010, for Jawa Bali area, Jawa Timur have relatively better investment penetration, although
most of source of investment is direct investments

Jawa  Bali
Tahun 2010
Jakarta Banten Jabar Jateng DIY Jatim Bali
Investments
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% 0.0%
Int'l  shares 0.0% 0.0% 0.0%
Property  -­‐ not  your  own  home 0.2% 0.0% 0.1% 0.0% 0.1%
Equity  in  Business 0.0% 0.0% 0.0%
Govt/Corp  Bonds 0.0% 0.0% 0.0%
Gold  Deposit 0.1% 0.0% 0.1% 0.0% 0.0%
Money  Lent 0.1% 0.1% 0.2% 0.0% 0.1%
Futures 0.1% 0.0%
Other  Direct  Investment 0.1% 0.0% 0.2% 0.9% 0.0%
Unspecified  DI
Total  DI  &  Inv  fund 0.6% 0.5% 0.6% 0.1% 1.3% 0.0%
Money  Market 0.0% 0.1% 0.0% 0.0%
Bonds 0.0%
Equity   0.0% 0.0%
Balanced  Equity 0.0%
Other  Managed  Funds 0.0% 0.1% 0.1%
Total  Managed  funds 0.0% 0.1% 0.1% 0.1% 0.1%
Total  currently  have  invest 0.6% 0.6% 0.6% 0.2% 1.3% 0.0%
none 99.3% 99.2% 99.2% 99.8% 99.6% 98.7% 100.0%
can't  say 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.

Outer  Jawa Bali

Tahun 2009
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel
Investments
Share  Options 0.0% 0.0% 0.0%
Share  in  Ind Comp 0.0%
Share  in  Ind Comp-­‐not  listed 0.0% 0.1%
Int'l  shares
Property  -­‐ not  your  own  home 0.1% 0.0% 0.3% 0.0%
Equity  in  Business 0.0%
Govt/Corp  Bonds
Gold  Deposit 0.0% 0.0% 0.0% 0.0% 0.0%
Money  Lent 0.0% 0.0% 0.8% 0.0%
Futures
Other  Direct  Investment 0.0% 0.8% 7.3% 0.2%
Unspecified  DI
Total  DI  &  Inv  fund 0.1% 0.0% 0.1% 0.8% 8.5% 0.2%
Money  Market 0.0% 0.2%
Bonds 0.0% 0.0%
Equity   0.0%
Balanced  Equity
Other  Managed  Funds
Total  Managed  funds 0.0% 0.0% 0.1%
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%
can't  say 0.2% 0.0% 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.

Outer  Jawa Bali

Tahun 2010
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel Sulut
Investments
Share  Options 0.1% 0.0% 0.1% 0.0% 0.0% 0.0%
Share  in  Ind  Comp 0.0% 0.0% 0.1% 0.0%
Share  in  Ind  Comp-­‐not  listed 0.0% 0.2% 0.0%
Int'l  shares 0.0%
Property  -­‐ not  your  own  home 0.3% 0.2% 0.1% 0.0% 0.0% 0.0%
Equity  in  Business 0.0% 0.0% 0.0%
Govt/Corp  Bonds 0.0% 0.0% 0.0%
Gold  Deposit 0.0% 0.0% 0.2% 0.0% 0.0%
Money  Lent 0.2% 0.0% 0.7% 0.0% 0.7% 0.2% 0.2%
Futures 0.0%
Other  Direct  Investment 0.1% 0.0% 0.3% 9.0% 0.0% 0.2% 0.6%
Unspecified  DI 0.0% 0.0%
Total  DI  &  Inv  fund 0.4% 0.3% 0.2% 0.4% 10.1% 0.1% 0.2% 0.7% 1.0% 0.2%
Money  Market 0.0% 0.1% 0.0% 0.0%
Bonds 0.0%
Equity   0.0% 0.0% 0.0%
Balanced  Equity 0.0% 0.0% 0.0%
Other  Managed  Funds 0.4% 0.0% 0.0%
Total  Managed  funds 0.4% 0.0% 0.1% 0.0% 0.0% 0.0%
Total  currently  have  invest 0.8% 0.3% 0.2% 0.4% 10.1% 0.1% 0.2% 0.7% 1.0% 0.2%
none 99.2% 99.6% 99.8% 99.6% 89.9%92.5%99.7% 98.9%98.8% 98.9%
can't  say 0.1% 0.0% 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 Jawa-
Bali area

Jawa-­‐Bali
Tahun 2009
Jakarta Banten Jabar Jateng DIY Jatim Bali
types  of  loans  currently  have
loan  on  home  lived  in 0.0% 0.1% 0.0% 0.0% 1.1%
loan  on  home  intended  to  live  in 0.0% 0.0% 0.0% 0.0%
loan  on  investment  property   0.0% 0.0% 0.0%
home  equity 0.2% 0.1% 0.1%
home  improvement  loan 0.4% 0.2% 0.0% 0.9%
total  home  loans 0.0% 0.5% 0.5% 0.1% 2.1%

personal  overdraft
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%

installment  loan 0.1% 0.4% 0.0% 0.9%
other  personal  loan 0.6% 0.3% 0.8% 0.2% 0.1% 0.9%
loan  unspecified 0.1% 0.1%
none 98.2% 99.5% 97.0% 95.8% 97.5% 98.8% 86.2%
no  anwer 0.1% 0.1% 0.0% 0.2% 0.0% 0.3%

Jawa Bali
Tahun 2010
Jakarta Banten Jabar Jateng DIY Jatim Bali
types  of  loans  currently  have
loan  on  home  lived  in 0.1% 0.2% 0.2% 0.1%
loan  on  home  intended  to  live  in 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%
home  improvement  loan 0.0% 0.0% 0.1% 0.1% 4.8%
total  home  loans 0.1% 0.1% 0.2% 1.2% 0.2% 0.4% 6.2%

personal  overdraft 0.0%

multipurpose  loans 0.1% 0.2% 0.6% 5.8% 0.1% 2.2% 0.6%
car  loan 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
motor  cycle  loan 0.4% 0.1% 1.9% 2.9% 0.1% 2.0% 2.1%
total  vehicles  loan 0.4% 0.1% 1.9% 2.9% 0.1% 2.0% 2.1%

student/education  loan 0.1% 0.1% 0.3% 0.0%

installment  loan 0.0% 0.0% 0.0% 0.0% 1.9%
other  personal  loan 0.1% 0.4% 0.3% 0.8% 0.2%
loan  unspecified 0.0% 0.0% 0.1%
none 99.0% 99.3% 96.6% 89.5% 99.1% 94.5% 88.9%
no  anwer 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% 0.0% 0.0% 0.2%
loan  on  investment  property   0.0% 0.3% 0.0%
home  equity 0.0% 0.1%
home  improvement  loan 0.0% 0.0%
total  home  loans 0.0% 0.0% 0.8% 0.5% 0.0%

personal  overdraft 0.0%

multipurpose  loans 0.0% 4.1% 0.2% 0.0%
car  loan 0.0% 0.0% 0.0%
motor  cycle  loan -­‐ 2.3% 0.0% 2.7% 1.1% 0.3% 0.1%
total  vehicles  loan 0.0% 2.3% 0.0% 2.8% 1.1% 0.3% 0.1%

student/education  loan 0.1% 0.3%

installment  loan 0.1% 0.1% 0.1%
other  personal  loan 0.0% 0.1% 0.2%
loan  unspecified 97.6%
100.0
none
% 99.8% 97.0% 94.1% 99.1% 99.5% 100.0% 99.8%
no  anwer 0.1% 0.1% 0.0% 0.0%

Outer  Jawa Bali

Tahun 2010
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel Sulut
types  of  loans  currently  have
loan  on  home  lived  in 0.3% 0.0% 0.0% 0.8% 0.0% 0.0% 0.2% 0.1%
loan  on  home  intended  to  live  in 0.0% 0.0% 0.1% 0.0% 0.3% 0.1%
loan  on  investment  property   0.1% 0.0% 0.0% 0.0% 0.2% 0.0% 0.0% 0.1%
home  equity 0.1% 0.2% 0.1% 0.0%
home  improvement  loan 0.1% 0.1% 0.0% 0.1% 0.0% 0.1% 0.2% 0.0%
total  home  loans 0.4% 0.3% 0.0% 0.1% 1.3% 0.2% 0.1% 0.7% 0.3%

personal  overdraft 0.0%

multipurpose  loans 1.8% 0.1% 0.0% 0.5% 2.0% 0.0% 0.0% 0.7% 1.8% 0.2%
car  loan 2.2% 0.0% 0.0% 0.4% 0.0% 0.0% 0.0% 0.1%
motor  cycle  loan 1.7% 0.4% 0.1% 0.5% 0.9% 0.1% 0.6% 2.1% 0.8% 1.4%
total  vehicles  loan 3.9% 0.4% 0.2% 0.5% 1.3% 0.1% 0.6% 2.1% 0.9% 1.4%

student/education  loan 0.3% 0.0% 0.0% 0.4% 0.0% 0.1%

installment  loan 0.9% 0.0% 0.3% 2.8% 0.0%
other  personal  loan 4.9% 0.0% 0.4% 0.6% 0.0% 0.1%
loan  unspecified 0.1% 0.0% 0.1% 0.1% 0.0%
none 88.5% 98.7% 99.7% 98.8% 94.3% 87.9% 99.1% 93.8% 96.6% 98.2%
no  anwer 0.6% 0.1% 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.

Jawa-­‐Bali
Tahun 2009
Jakarta Banten Jabar Jateng DIY Jatim Bali
TYPES  OF  INSURANCE  COVER  PERSONALLY  HAVE
Home  contents  insurance 0.1% 0.0% 0.0% 0.0%
Home  buildings  insurance 0.1% 0.2% 0.0% 0.0% 0.0% 0.1%
Extended  warranty  on  goods  (TV,PC,etc.) 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% 0.0%
Variable  Annuity 0.0% 0.0%
Other  life  insurance  or  annuities 0.0% 0.1% 0.0% 0.3% 0.0% 0.2%
Total  Life  Insurance  and  Annuities 0.8% 2.2% 0.3% 0.3% 0.6% 0.3% 10.2%
Health  Insurance 1.3% 0.1% 0.1% 0.0% 0.1% 4.2%
Critical  Illness  Insurance 0.0% 0.0% 0.0%
Accident  insurance  (other  than  car  or  life  insurance) 0.3% 0.0% 0.0% 0.0% 0.1% 0.6%
 Jawa-­‐Bali
Tahun 2009
Jakarta Banten Jabar Jateng DIY Jatim Bali
Private  medical  insurance 0.5% 1.5% 1.4% 2.3% 0.0% 1.1% 3.9%
Dental  Insurance 0.0%
Long  Term  Care  insurance 0.0% 0.0% 0.0% 0.1%
Job  loss   cover
Travel  insurance
Home  loan  payment  protection  insurance
Other  Personal  insurance 0.4% 0.2% 0.0% 0.2% 0.1%
Total  Other  Personal  Insurance 2.3% 1.6% 1.7% 2.3% 0.0% 1.4% 8.6%
Total  Non  Life  Insurance 0.6% 0.2% 0.6% 0.0% 0.3% 0.2% 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 3.0% 3.8% 2.1% 2.6% 0.6% 1.8% 14.6%
No  Answer 97.0% 96.2% 97.9% 97.4% 99.4% 98.2% 85.4%

CURRENTLY  OWN  SHARES

Yes 0.3% 0.2% 0.2% 0.2% 0.2% 0.0% 0.1%
No 98.8% 99.0% 99.4% 92.6% 98.0% 98.6% 78.7%
No  Answer 1.0% 0.9% 0.4% 7.3% 1.8% 1.4% 21.3%

PROPERTIES  CURRENTLY  HAVE

Own  Residence  (not  farm) 64.1% 67.1% 83.0% 80.5% 13.7% 73.7% 56.3%
Holiday  home 0.1% 0.0% 0.5% 0.0% 0.0% 0.5%
Farm 0.2% 0.2% 18.6% 2.8% 0.1% 1.7% 10.3%
Residential   investment  property 0.4% 0.1% 0.6% 0.0% 0.0% 0.7%
Other  investment  property 0.3% 0.1% 0.5% 0.0% 1.7% 0.2%
Can't  Say 35.8% 32.7% 17.0% 19.4% 86.3% 26.3% 43.5%

Jawa-­‐Bali
Tahun 2010
Jakarta Banten Jabar Jateng DIY Jatim Bali
TYPES  OF  INSURANCE  COVER  PERSONALLY  
HAVE
Critical  Illness  Insurance 0.0% 0.0%
Home  buildings  insurance 0.0% 0.1% 0.0% 0.1% 0.0%
Extended  warranty  on  goods  (TV,PC,etc.)
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% 0.1%
Term  Life  Insurance 0.6% 0.1% 0.3% 0.4% 0.3% 0.4% 1.4%
Endowments 0.1% 0.0% 0.1% 0.0% 0.0% 1.3%
Whole  of  life  policies 0.0% 0.1% 0.0% 0.0% 0.4% 0.1% 1.4%
Fixed  Annuity 0.0% 0.0% 0.0% 0.1% 0.1%
Variable  Annuity 0.0%
Other  life  insurance  or  annuities 0.3% 0.0% 0.1% 0.4% 0.2% 0.1%
Total  Life  Insurance  and  Annuities 1.3% 1.3% 0.7% 1.1% 0.7% 0.8% 4.3%
 Jawa-­‐Bali
Tahun 2010
Jakarta Banten Jabar Jateng DIY Jatim Bali

Health  Insurance
0.7% 0.2% 0.2% 0.1% 0.1% 0.3% 0.6%
Critical  Illness  Insurance
0.0% 0.0% 0.1% 0.0% 1.1%
Accident  insurance  (other  than  car  or  life  
insurance) 0.1% 0.0% 0.1% 0.0% 0.1% 0.1% 0.2%
Private  medical  insurance
0.3% 0.5% 0.7% 1.6% 0.4% 0.5% 0.4%
Dental  Insurance
0.1% 0.0% 0.0%
Long  Term  Care  insurance
0.0% 0.0% 0.0% 0.0%
Job  loss  cover
0.0%
Travel  insurance
0.0% 0.0%
Home  loan  payment  protection  insurance
0.0% 0.1%
Other  Personal  insurance
0.3% 0.0% 0.4% 0.2% 0.3%
Total  Other  Personal  Insurance
1.4% 0.7% 1.2% 2.0% 0.4% 1.0% 2.3%
Total  Non  Life  Insurance
0.4% 0.5% 0.8% 0.4% 0.4%
Total  Personal  Accident  and  Health  Insurance
1.2% 0.7% 0.9% 1.8% 0.4% 0.7% 2.3%
TOTAL  Have  Any  Insurance
2.6% 2.2% 2.0% 3.2% 1.1% 1.7% 4.8%
No  Answer
97.4% 97.8% 98.0% 96.8% 98.9% 98.3% 95.2%

Outer  Jawa Bali

Tahun 2009
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel
TYPES  OF  INSURANCE  COVER  PERSONALLY  HAVE
Home  contents  insurance 0.1% 0.0%
Home  buildings  insurance 0.0% 0.0% 0.1% 0.3% 1.4%
Extended  warranty  on  goods  (TV,PC,etc.) 0.0%
Vehicle  insurance  -­‐ Total   Loss   Only 0.0% 0.0% 0.1%
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 0.1% 0.0%
Total  Home/Property/Car  Insurance 0.0% 0.1% 0.1% 0.0% 0.3% 1.5% 0.0%
Term  Life  Insurance  -­‐ Family  Income  Benefit 0.0% 0.0% 0.1% 0.0% 0.1%
Term  Life  Insurance 0.1% 0.1% 0.1% 0.1% 0.2% 1.1% 0.0%
Endowments 0.0% 0.6% 0.1% 0.0%
Whole  of  life  policies 0.0% 0.1% 0.2% 0.0% 0.2%
Fixed  Annuity 0.1% 0.0%
Variable  Annuity
Other  life  insurance  or  annuities 0.1% 0.2% 0.0% 0.0% 0.1%
Total  Life  Insurance  and  Annuities 0.2% 0.5% 0.4% 0.2% 0.8% 1.6% 0.0%
Health  Insurance 0.0% 0.2% 0.1% 0.0% 0.1%
Critical  Illness   Insurance
Accident  insurance  (other  than   car  or  life   insurance) 0.0% 0.1% 0.0% 0.1%
 Outer  Jawa Bali
Tahun 2009
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel
Private  medical  insurance 0.1% 0.4% 0.0% 0.5% 4.4% 0.4%
Dental  Insurance
Long  Term  Care  insurance 0.1%
Job  loss  cover
Travel  insurance
Home  loan  payment  protection  insurance
Other  Personal  insurance 0.0% 0.0% 0.0% 0.3% 3.9% 0.1%
Total  Other  Personal  Insurance 0.2% 0.2% 0.7% 0.4% 4.4% 4.7% 0.4%
Total  Non  Life  Insurance 0.1% 0.1% 0.1% 0.3% 4.1% 1.7% 0.0%
Total  Personal  Accident  and  Health  Insurance 0.2% 0.2% 0.6% 0.2% 0.5% 4.5% 0.4%
TOTAL  Have  Any  Insurance 0.4% 0.7% 0.7% 0.5% 4.7% 7.6% 0.4%
100.0
No  Answer 99.6% 99.3% 99.3% 99.5% 95.3% 92.4% 100.0% 99.6%
%

CURRENTLY  OWN  SHARES

Yes 0.7% 0.8% 0.4%
No 99.2% 96.2% 99.3% 99.3% 68.9% 94.1% 91.7% 99.8% 99.4%
No  Answer 0.0% 3.0% 0.7% 0.7% 30.6% 5.9% 8.3% 0.2% 0.6%

PROPERTIES  CURRENTLY  HAVE

Own  Residence  (not  farm) 48.1% 84.8% 98.4% 100.0% 77.2% 93.4% 69.5% 71.8% 93.3%
Holiday  home 0.0% 0.8% 0.3% 0.2% 0.3%
Farm 0.0% 17.1% 14.7% 0.8% 2.6% 44.1%
Residential  investment  property 0.2% 0.1% 0.2% 0.1%
Other  investment  property 0.0% 0.0% 0.4% 0.2%
Can't  Say 51.9% 15.2% 1.6% 22.7% 6.5% 30.5% 28.2% 6.7%

Outer  Jawa Bali

Tahun 2010
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel Sulut
TYPES  OF  INSURANCE  COVER  
PERSONALLY  HAVE
Home  contents  insurance 0.0% 0.0% 0.0% 1.0% 0.1%
Home  buildings  insurance 0.4% 0.1% 0.0% 0.0% 0.2% 0.1% 0.1% 0.0% 0.1%
Extended  warranty  on  goods  
(TV,PC,etc.) 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%
Other  home,  property  or  car  
insurance 0.3% 0.0% 0.0% 0.0% 0.1%
Total  Home/Property/Car  Insurance 3.2% 0.2% 0.3% 0.0% 1.4% 0.1% 0.1% 0.7% 0.2% 0.1%
Term  Life  Insurance  -­‐ Family  Income  
Benefit 1.0% 0.2% 0.1% 0.2% 1.0% 0.0% 0.5% 1.5%
Term  Life  Insurance 2.3% 0.1% 0.4% 0.0% 1.5% 0.1% 0.1% 0.5% 0.1% 0.7%
Endowments 0.0% 0.1% 0.0%
Whole  of  life  policies 0.0% 0.0% 0.0% 0.0% 0.6% 0.2%
Fixed  Annuity 0.1% 0.0% 0.1% 0.0% 0.0%
Variable  Annuity 0.1%
Other  life  insurance  or  annuities 0.5% 0.0% 0.0% 0.0% 0.0% 0.0%
Total  Life  Insurance  and  Annuities 3.9% 0.2% 0.5% 0.2% 2.8% 0.1% 0.1% 1.5% 1.9% 0.7%
 Outer  Jawa Bali
Tahun 2010
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel Sulut

Health  Insurance
0.4% 0.4% 0.1% 0.1% 0.5% 0.1% 0.5% 1.2% 0.3%
Critical  Illness  Insurance
0.0% 0.1% 0.0%
Accident  insurance  (other  than  car  or  
life  insurance) 0.1% 0.0% 0.2% 0.4% 0.0% 0.1%
Private  medical  insurance
1.9% 0.6% 0.2% 0.0% 0.6% 0.0% 0.1% 0.2% 0.3% 0.7%
Dental  Insurance

Long  Term  Care  insurance

0.0% 0.0% 0.1% 0.2%
Job  loss  cover

Travel  insurance
Home  loan  payment  protection  
insurance 0.0% 0.0%
Other  Personal  insurance
0.5% 0.1% 0.0% 0.0% 1.7% 0.0% 0.1% 0.2%
Total  Other  Personal  Insurance
2.9% 1.2% 0.2% 0.2% 3.0% 0.1% 0.7% 1.7% 0.8% 0.7%
Total  Non  Life  Insurance
3.7% 0.3% 0.3% 0.1% 2.3% 0.1% 0.1% 0.7% 0.4% 0.1%
Total  Personal  Accident  and  Health  
Insurance 2.4% 1.1% 0.2% 0.1% 1.3% 0.1% 0.6% 1.7% 0.6% 0.7%
TOTAL  Have  Any  Insurance
9.4% 1.4% 1.0% 0.3% 4.8% 0.3% 0.9% 3.1% 2.3% 1.5%
No  Answer
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

Jawa-­‐Bali
Tahun 2009
Jakarta Banten Jabar Jateng DIY Jatim Bali
number  of  plastic  card  now  have
none 5.1% 4.2% 20.3% 18.4% 2.0% 20.7% 1.7%
one 15.9% 6.7% 21.8% 5.1% 2.4% 21.7% 4.2%
two 23.3% 9.0% 25.2% 5.1% 0.1% 22.6% 4.9%
three 24.3% 14.8% 29.3% 0.8% 25.8% 2.9%
four 4.0% 10.1% 72.7% 0.3% 4.6%
five  or  more 37.7% 21.4% 1.0% 4.2% 19.3%
own  or  use  a  mobile  phone
a  GSM  Phone 6.5% 5.2% 22.6% 16.1% 2.3% 22.0% 2.7%
a  C DMA  Phone 25.6% 10.3% 5.1% 25.7% 3.0% 20.2% 5.1%
GSM  and  C DMA  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%
Jawa Bali
Tahun 2010
Jakarta Banten Jabar Jateng DIY Jatim Bali
number  of  plastic  card  now  have
none 5.2% 4.3% 20.3% 18.0% 2.0% 20.5% 1.8%
one 13.8% 5.1% 20.2% 10.0% 1.7% 22.0% 3.1%
two 20.4% 6.8% 21.1% 8.8% 2.5% 21.8% 1.4%
three 22.2% 2.6% 24.7% 7.1% 1.2% 32.8%
four 37.7% 0.0% 5.2% 10.1% 41.5%
five  or  more 1.6% 0.9% 2.1% 0.1% 48.1%
own  or  use  a  mobile  phone
a  GSM  Phone 5.8% 3.8% 20.9% 17.1% 2.5% 19.9% 2.4%
a  C DMA  Phone 24.0% 9.4% 28.7% 5.7% 2.1% 19.0% 2.5%
GSM  and  C DMA  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%
 Outer  Jawa Bali
Tahun 2009
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel
number  of  plastic  card  now  have
none 6.4% 2.3% 3.7% 3.6% 2.7% 1.8% 1.6% 1.2% 4.4%
one 1.8% 2.3% 2.1% 2.5% 0.1% 5.6% 2.0% 4.8% 0.9%
two 0.6% 2.8% 0.8% 4.2% 0.3% 0.5% 0.3% 0.2% 0.0%
three 0.5% 0.4% 1.0% 0.3% 0.0%
four 2.1% 3.9% 2.1% 0.3%
five  or  more 16.4%
own  or  use  a  mobile  phone
a  GSM  Phone 3.6% 1.6% 1.7% 5.1% 4.4% 2.7% 1.4% 1.0% 1.1%
a  C DMA  Phone 1.0% 0.2% 1.4% 0.5% 0.6% 0.8% 0.3% 1.3% 0.9%
GSM  and  C DMA  Phone 1.0% 0.3% 0.6% 0.8% 1.8% 1.4% 0.9% 0.4% 0.5%
total  own  or  use 3.2% 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%
Outer  Jawa Bali
Tahun 2010
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel Sulut
number  of  plastic  card  now  have
none 2.1% 3.6% 6.2% 3.6% 2.7% 2.0% 1.7% 1.2% 4.2% 1.1%
one 5.2% 2.9% 3.9% 1.5% 0.6% 0.8% 0.8% 4.0% 3.5% 1.4%
two 2.3% 2.3% 1.6% 1.1% 1.0% 0.7% 0.3% 3.8% 3.4% 1.7%
three 0.4% 0.9% 0.7% 0.4% 0.2% 1.6% 2.6% 5.4%
four 2.1% 2.7% 0.0% 0.7%
five  or  more 5.1% 2.0% 33.8% 6.2%
own  or  use  a  mobile  phone
a  GSM  Phone 2.6% 2.3% 5.5% 4.3% 3.7% 2.0% 1.5% 1.6% 3.2% 1.6%
a  C DMA  Phone 0.5% 1.2% 1.1% 1.0% 0.8% 0.6% 1.0% 0.4% 1.5% 0.7%
GSM  and  C DMA  Phone 0.8% 1.0% 1.1% 1.7% 1.8% 0.9% 1.3% 0.8% 2.2% 1.4%
total  own  or  use 2.3% 2.2% 5.1% 3.9% 3.3% 1.8% 1.4% 1.5% 3.0% 1.5%
total  do  not  own  or  use 2.2% 6.0% 7.9% 3.0% 1.3% 2.0% 2.0% 0.9% 6.1% 0.5%
can't  say 0.0% 1.8% 0.3% 0.9% 5.2% 3.3% 1.6% 7.3% 3.6% 3.5%

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.

Jawa-­‐Bali
Tahun 2009
Jakarta Banten Jabar Jateng DIY Jatim Bali
Finance  Disagree
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  
5.7% 3.3% 21.9% 14.9% 0.8% 32.4% 1.5%
having  to  go  to  a  branch
I  prefer  to  invest  in  something  with  a  safe  return 6.9% 1.3% 32.6% 13.5% 1.8% 17.1% 2.8%
Life-­‐Cycle

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% -­‐ 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%
 Jawa-­‐Bali
Tahun 2010
Jakarta Banten Jabar Jateng DIY Jatim Bali
Finance  Disagree
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%
The  Indonesian  economy  appears  to  be  
improving 5.4% 4.8% 25.8% 19.2% 2.0% 18.4% 1.6%
I  feel  financially  stable  at  the  moment 5.3% 4.6% 25.6% 17.0% 1.4% 18.7% 1.7%
I'm  worried  about  interest  rates  at  the  moment 5.1% 5.2% 19.3% 17.5% 2.1% 26.0% 1.9%
It  would  be  ideal  if  I  could  conduct  all  my  
banking  without  ever  having  to  go  to  a  branch 5.3% 4.4% 19.4% 16.2% 1.4% 25.8% 1.9%
I  prefer  to  invest  in  something  with  a  safe  
return 7.2% 3.7% 20.5% 16.2% 1.0% 19.6% 2.1%
Life-­‐Cycle

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%

Jawa-­‐Bali
Tahun 2009
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel

Finance  Disagree
Credit  enables  me  to  buy  the  things  that  I  want 4.3% 2.3% 3.3% 1.9% 0.4% 1.5% 2.5% 1.7% 5.5%
I  like  to  be  fully  insured 4.2% 2.6% 4.9% 1.3% 0.4% 0.7% 2.8% 0.9% 1.1%
Recently  I've  cut  down  my  spending 5.8% 3.3% 2.7% 3.3% 0.2% 0.4% 3.0% 1.0% 1.3%
The  Indonesian  economy  appears  to  be  improving 6.8% 2.0% 5.4% 5.8% 0.5% 1.3% 0.8% 0.7% 0.9%
I  feel  financially  stable  at  the  moment 6.3% 2.0% 3.7% 5.1% 0.5% 1.3% 0.5% 0.8% 4.8%
I'm  worried  about  interest  rates  at  the  moment 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% 2.1% 5.1% 2.2% 0.5% 1.1% 0.6% 0.7% 1.4%
ever  having  to  go  to  a  branch
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%
Life-­‐Cycle

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% 2.7%

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%
 Jawa-­‐Bali
Tahun 2010
Sumut Sumbar Sumsel Lampung Riau Kalbar Kalsel Kaltim Sulsel

Finance  Disagree
Credit  enables  me  to  buy  the  things  that  I  want 2.2% 3.3% 4.7% 3.6% 1.4% 1.6% 1.7% 1.3% 5.7%
I  like  to  be  fully  insured 2.7% 4.4% 5.2% 3.3% 1.3% 2.0% 2.0% 1.2% 2.2%
Recently  I've  cut  down  my  spending 2.2% 3.7% 6.6% 1.8% 2.0% 1.0% 2.0% 0.9% 3.3%
The  Indonesian  economy  appears  to  be  improving 2.3% 3.0% 6.1% 3.9% 1.7% 1.1% 1.2% 0.6% 2.4%
I  feel  financially  stable  at  the  moment 2.3% 3.1% 5.2% 4.4% 2.0% 1.3% 1.4% 0.7% 4.8%
I'm  worried  about  interest  rates  at  the  moment 2.3% 3.1% 4.3% 3.3% 1.6% 2.4% 1.6% 1.0% 3.0%
It  would  be  ideal  if  I  could  conduct  all  my  banking  without  
ever  having  to  go  to  a  branch 2.1% 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%
Life-­‐Cycle

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%

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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