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Research Paper | Finance | Indonesia | Volume 8 Issue 5, May 2019

Analysis of Determinants Affecting Financial Inclusion in Indonesia

Irma Yuningsih | Dadan Rahadian ^[2]

Abstract: Financial institutions have a role to accelerate economic growth in a region especially in developing countries like Indonesia. This study use panel data covering 22 provinces in Indonesia during the period 2013-2017 assess the behavior and determinants of financial inclusion in the Indonesia. Increased population density has a beneficial impact on the deposit penetration. The level of income had a positive impact on the deposit penetration means that economic conditions are important to the improvement of financial inclusion. The proportion of the plant and its employees have a positive impact on financial inclusion means that income and employment creation or make people more active, aware and interested in banking activities and contribute to financial inclusion.

Keywords: Financial Inclusion, Data Panel, Fixed Effect Model

Edition: Volume 8 Issue 5, May 2019,

Pages: 806 - 813

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