Role of Banking Inclusion in Reducing Poverty in Eastern Indonesian Region, Sulampua (KTI)

DOI

10.2991/icame-18.2019.48How to use a DOI?

Keywords

Financial and banking inclusion, Inequality income, Reducing Poverty

Abstract

This paper has the objective to understand the condition, factor determining and effect of banking inclusion program to income distribution in order to reduce poverty in a selected city in the Eastern Indonesian Region (KTI). It also analyses the banking inclusion effect on income distribution and poverty level in the regions. Banking inclusion is measured by the index, in particular, banking inclusion through banking penetration indicator, banking accessibility, and also the use of bank account. Distribution and inequality of financial and income are measured by the total growth of the poor in the respective regions. Type of this research is explanatory with qualitative approaches by using secondary data and survey in the selected city in KTI. The focuses of research analysis are analysis on banking inclusion index and analysis on relation test between banking inclusion to income distribution indicator and poverty level. Analysis method employs various analysis tools. Banking inclusion index is measured by using financial inclusion index formula. Inequality income indicator and inequality on financial sector employ, namely Gini Ratio Index, and Relation Analysis Approach employs the descriptive method. Generally, assumption put forward is that banking inclusion in the city in KTI can be still categorized in financial inclusion index, in particular, banking relatively low and unequal, except in some province which has been becoming a strategic economic hub, namely Makassar and Manado. It is caused by some structural problems, institutional, human resources, and applicable rules. The result of relation test between banking inclusion index and its inequality to economic inequality indicator, income distribution, and poverty are expected to indicate one-way relation, in which banking inclusion index affects distribution index, and subsequently affect poverty level.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Marsuki
AU  - Sabir
AU  - Munawwarah S.M
AU  - Muhammad J.T
PY  - 2019/08
DA  - 2019/08
TI  - Role of Banking Inclusion in Reducing Poverty in Eastern Indonesian Region, Sulampua (KTI)
BT  - Proceedings of the 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018)
PB  - Atlantis Press
SP  - 442
EP  - 453
SN  - 2352-5428
UR  - https://doi.org/10.2991/icame-18.2019.48
DO  - 10.2991/icame-18.2019.48
ID  - 2019/08
ER  -