Information System of "Laku Pandai": Achieving Financial Inclusion-Financial Technology SMEs Sector in Banyuwangi

Abstract

Indonesian Financial Inclusion level has increased each year. It is still slow compared to the level of 
Financial Inclusion in other ASEAN countries. Indonesia index in 2014 was 36%, while the index of Thailand 
was 78%, Malaysia 81%, and Singapore 96%. Several factors are slow increase in the distance of people’s 
homes with financial services and the difficulty of public access to financial products. OJK through policies 
issued Laku Pandai (Financial Technology – based) to tackle the problem. Banyuwangi is the largest 
district in East Java, with 1,6 million residents in 2017, and 269.267 SMEs in 2015. The amount is deemed to 
represent the impact of Laku Pandai in East Java. Based on research data obtained through interview, 
observation, and documentation descriptive qualitative methods found problems accessing credit 
undertaken by SMEs through Laku Pandai. Therefore, we need to redesign on the credit system of Laku 
Pandai. The purpose of this research is to develop the credit system of Laku Pandai in order to increase 
effectiveness and efficiency in achieving financial inclusion, especially in the SME sector. Result from the 
study show the necessary capital to redesign process credit system can provide great benefits to Bank 
that Organize Laku Pandai.