According the Radar Bali, Indonesian President Susilo Bambang Yudhoyono has paid public tribute to the village banking system in Bali. The presidential praise was offered to the Village Credit Associations (LPD) during the President's opening remarks at the Alliance for Financial (AFI) Global Policy Forum on Monday, September 27, 2010, in Bali.
The President told the delegates that Bali's LPD system is worthy of emulation and duplication by any country wishing to create a financially inclusive society.
Eat, Pray, Love
In an expansive mood, the Indonesian President encouraged the executives to return to Bali in the near future, bringing their families in order that they could experience the beauty of Bali depicted in the hit-film Eat, Pray, Love - starring Julia Roberts.
Being Financially Inclusive
Returning to his prepared remarks, President Yudhoyono cited six key factors in creating an atmosphere of financial inclusiveness.
First is the need for institutional leadership which, in the Indonesian case, has seen Bank Rakyat Indonesia lend Rp. 20 trillion (US$2.2 billion) in credits for community-based enterprises (Kredit Usaha Rakyat – KIR).
Secondly, there is a need for coordination between various sectors of the economy including private sector involvement. Thirdly, a diversified approach is also needed to address the specific characteristics of each sector. "In Bali, there is the LPD. The LPD is very good as an example of a diversified approach to address the micro-economy," said Yudhoyono.
Fourth and fifth, the President said that financial inclusiveness also required a closeness to culture and a need for innovation.
The sixth and last factor is the need for the strict enforcement of laws and regulations.
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