VIDEO RISET 37

Summary

This transcript discusses the crucial role of the financial and insurance sectors in mitigating risks, particularly during the COVID-19 pandemic. It highlights the importance of risk management for businesses, such as small enterprises, and the need for a strong, balanced financial sector, both banking and non-banking, to support economic recovery. The focus on improving financial literacy, enhancing human resources, and addressing technical challenges in the industry is emphasized. The AFG's upcoming conference aims to promote literacy, share industry experiences, and engage both policymakers and the public in building a more sustainable and resilient financial ecosystem.

Takeaways

• 😀 The role of the insurance industry in risk mitigation, especially during the COVID-19 pandemic, was crucial in managing increased health-related claims and supporting small businesses with credit.
• 😀 The government implemented fiscal policies, such as credit injections for small businesses (UMKM), which worked in tandem with insurance mechanisms to stabilize the economy.
• 😀 A major focus in the last two years was on mitigating risks related to the COVID-19 pandemic, health insurance claims, and ensuring the survival of UMKM businesses.
• 😀 For Indonesia to achieve its economic goals by 2045, a large and stable financial sector is needed. This includes growing both banking and non-banking financial sectors.
• 😀 The non-bank financial sector, including insurance and pension funds, must grow to provide not only financing but also risk mitigation for the economy.
• 😀 Financial literacy is a key challenge in Indonesia, especially for the lower-middle class. Without adequate literacy, it is difficult to involve the population in insurance and pension schemes.
• 😀 There are two levels of financial literacy to address: one for the general population and one for policymakers who drive reforms in the financial sector.
• 😀 The financial sector faces challenges related to skilled human resources, particularly for specialized areas like insurance, pension fund management, and investment forecasting.
• 😀 Technological advancements and robust data systems are essential for maintaining the stability and effectiveness of the financial sector, especially in insurance and pension management.
• 😀 The upcoming AFG conference aims to improve financial literacy, facilitate policy discussions, and allow industry players to share experiences, especially regarding digitalization and green economy investments.

Q & A

What is the role of the financial sector in mitigating risk, as mentioned in the transcript?

The financial sector, particularly insurance, plays a key role in mitigating risks, especially during times of crisis, like the COVID-19 pandemic. It helps reduce the impact of risks by providing coverage for health-related claims and supporting economic recovery through initiatives such as credit guarantees for small businesses (UMKM).

How did the government respond to the pandemic in terms of economic support?

The government implemented fiscal policies, including increasing subsidies and supporting economic recovery measures, such as providing credit injections for micro, small, and medium enterprises (UMKM). This was aimed at stabilizing the economy during the pandemic.

What is the significance of non-bank financial institutions in Indonesia's economic recovery?

Non-bank financial institutions, such as insurance and pension funds, are critical to Indonesia's economic recovery. They help manage risks and ensure stability, complementing the banking sector. The growth of these institutions is essential for diversifying financing sources and supporting long-term economic stability.

What challenges does Indonesia face in terms of financial literacy?

Indonesia faces significant challenges in financial literacy, particularly among the lower-income population. Less than 20% of the population understands insurance, and this gap in knowledge makes it difficult to engage people in financial products, such as insurance and pensions, that are crucial for risk mitigation.

How does financial literacy affect the effectiveness of the insurance sector?

Financial literacy is foundational to the credibility and effectiveness of the insurance sector. If the public doesn't understand the importance of insurance for risk mitigation, it becomes difficult to get them involved in insurance programs, which are essential for stabilizing financial risks.

What role does human resource development (SDM) play in the financial sector?

Human resource development is crucial for the financial sector's growth. It requires specialized skills, especially for areas such as life insurance, where forecasting risk is complex. Additionally, there is a need for expertise in investment management to ensure that funds in insurance and pension systems are properly managed.

What technical issues must be addressed in the financial sector?

The financial sector must address technical issues such as investment management, where funds need to be handled prudently. Additionally, the management of insurance and pension funds requires long-term planning to ensure that assets grow in line with liabilities over extended periods.

Why is database system integration important for the financial industry?

Database system integration is essential for ensuring data accuracy and preventing errors. Poor data management can lead to issues such as data inconsistencies, which can undermine the stability of the insurance and financial sectors.

What is the objective of the AFG conference mentioned in the transcript?

The AFG conference aims to enhance financial literacy, focusing on the insurance and pension sectors, and addressing challenges like digitalization and green economy investments. The conference will feature experts and industry players sharing their experiences and insights.

Who is the target audience for the AFG conference, and how is it structured?

The target audience for the AFG conference includes regulators, industry players, associations, and the general public. The event is hybrid, allowing participation both in person and virtually, with a focus on fostering knowledge exchange and improving financial literacy across various sectors.