The Role of the Government to Improve Financial Literacy in Efforts to Prevent the Use of Illegal Online Loans

Financial technology (Fintech) is a technological innovation developed in the financial sector so that financial transactions can be carried out practically, easily, and effectively. The progress of fintech in the field of money lending services has given rise to many applications/services based on peer-to-peer lending or online loans (pinjol). Based on the National Survey of Financial Literacy and Inclusion conducted by OJK in 2019, the financial literacy index reached 38.03%. However, 21 out of 34 provinces in Indonesia still have financial literacy levels below the average, with the lowest 3 provinces being: 1) East Nusa Tenggara (27.82%); 2) West Papua (28.87%); and 3) Papua (29.13%). Besides that there is a very high inequality when compared to the province which has the highest level of financial literacy, namely Jakarta (59.16%). NTT is also included as one of Indonesia’s 3T regions (the outermost, the frontmost, and the lagging). This study aims to examine efforts to increase financial literacy and its relation to online lending trends in East Nusa Tenggara. The study used qualitative methods, with data collection sourced from interviews, observations, and literature studies. Based on the research results, OJK has made efforts to improve financial literacy as well as to eradicate illegal online loans, which have been carried out in a planned, measurable, achievement-oriented, sustainable, and collaborative manner, one of which is demonstrated or manifested in the implementation of the Regional Investment Alert Task Force (SWID). However, the implementation of improving financial literacy needs to be continued and improved, especially in terms of the number of activities, socialization of activities that have been implemented, and improving coordination with other stakeholders. Keywords: fintech, peer-to-peer lending, online loan, illegal, financial literac

The Role of The Government to Improve Financial Literacy in Efforts to Prevent The Use of Illegal Online Loans

Financial Technology (Fintech) is a technological innovation developed in the financial sector so that financial transactions can be carried out practically, easily, and effectively. The progress of fintech in the field of money lending services has given rise to many applications/services based on peer-to-peer lending or online loans (pinjol). Based on the National Survey of Financial Literacy and Inclusion conducted by OJK in 2019, the financial literacy index reached 38.03%. However, 21 out of 34 provinces in Indonesia still have financial literacy levels below the average, with the lowest 3 provinces being: 1) East Nusa Tenggara (27.82%); 2) West Papua (28.87%); and 3) Papua (29.13%), besides that there is a very high inequality when compared to the province which has the highest level of financial literacy, namely Jakarta (59.16%). NTT is also included as one of Indonesia’s 3T regions (The Outermost, The Frontmost, and The Lagging). This study aims to examine efforts to increase financial literacy and its relation to online lending trends in East Nusa Tenggara. The study used qualitative methods with data collection sourced from interviews, observations, and literature studies. Based on the research results, OJK has made efforts to improve financial literacy as well as to eradicate illegal online loans, which have been carried out in a planned, measurable, achievement-oriented, sustainable, and collaborative manner, one of which is demonstrated or manifested in the implementation of the Regional Investment Alert Task Force (SWID). However, the implementation of improving financial literacy needs to be continued and improved, especially in terms of the number of activities, socialization of activities that have been implemented, and improving coordination with other stakeholders. Keywords: fintech, peer-to-peer lending, online loan, illegal, financial literac

Implementation of Good Governance Principles in the Land Transportation Management Center

To achieve globalization and modernization, public organizations must implement good governance in order to respond to and meet community expectations. One of these expectations is land transportation management, which in Indonesia is handled by the Land Transportation Management Center (BPTD). Good governance should be implemented in BPTD in the hopes of improving performance and, as a result, community satisfaction, and resolving problems with ground transportation. BPTD still has a number of issues to deal with, including the state of the transportation infrastructure for road, urban, river and lake transportation and crossings, transportation safety, and administrative issues. This study examined how four principles of good governance have been implemented at BPTD: accountability, transparency, openness, and the rule of law. The study focused on BPTD Region IX in West Java Province, BPTD Region IX in Central Java Province, and DIY provinces. This study employed qualitative descriptive methods. According to the findings, BPTD has implemented the principles of good governance, but it still has room for improvement by sharpening its performance indicator targets, making LAKIP more widely known, measuring community satisfaction, and pursuing independent innovation. Keywords: transportation, good governance, accountability, transparenc