Treffer: INCLUSIVE FINANCE IN BANKING AND THEIR EFFECT ON ECONOMIC GROWTH AND POVERTY RATE IN DISTRICT/CITY IN WEST JAVA PROVINCE.

The National Financial Inclusive Strategy (SNKI) aims to achieve economic prosperity through financial ranking, and regulating system finance in Indonesia by creating a financial system that can be accessed by all levels of society. The purpose of this study is to analyze financial inclusion on economic growth and poverty levels in districts / cities in West Java Province 2010-2015. This study us panel data using the period 2010- 2015. To achieve the purpose of the study, this research used four econometric models . The first econometric model is related to investigating the effects of the per capita Gross Regional Domestic Product (GRDP), education level, and infrastructure (road) on the financial inclusion. The access dimension is calculated from the number of bank offices per 100,000 adult population. The second econometric models studies the effects of the number of MSME loans to Third Party Funds, education, and infrastructure to financial inclusion. The usage dimension is calculated from the number of Third Party Funds (TPF) accounts per 1,000 adult population. The third econometric models investigates the effects of inclusive finance and investment on economic growth. The last models studies the effect of the inclisuve finance, economic growth and the amount of credit to TPF on the poverty level. The data panel regression method with the recursive model is applied to estimate the system of equations. The results of the study conclude that financial inclusiveness is affected by the GDP per capita the level of education but was not affected by road infrastructure. Financial inclusiveness (usage) is influence by the amount of credit and education level but was not affected by road infrastructure. Economic investment is affected by the inclusive finance (access and usage) while investment has no effect. Lastly, the poverty rates affected financial inclusion, Economic Growth and the number of MSME credits. [ABSTRACT FROM AUTHOR]

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