Indonesia launches council to shift financial inclusion toward household welfare

At a national coordination meeting on Oct. 22, 2026, President Prabowo Subianto announced the formation of the National Council for Financial Welfare (DNKK), replacing the earlier National Council for Inclusive Finance. The body, chaired by Prabowo with Airlangga Hartarto as executive chair, will evaluate families' financial health, ability to absorb economic shocks, and confidence in managing money. The move follows a survey by OJK, BPS and LPS that recorded a 93.61% financial inclusion rate but only 69.57% financial literacy, exposing a 24.04-point gap.

DNKK will coordinate regional TPAKD networks across all provinces, districts and cities to improve literacy and extend credit to micro, small and medium enterprises. New lending schemes have already disbursed tens of trillions of rupiah, aiming to steer borrowers away from loan sharks and lower borrowing costs, especially for women entrepreneurs. The council’s broader goal is to link loan distribution with real income gains for households, shifting policy focus from sheer loan volume to welfare outcomes.