Financial Literacy in the Crypto Context

Bittime - Financial literacy has become a hot issue over the last few years due to the many cases related to pinjol and judol.

Responding to the pinjol and judol crisis, the Indonesian government then began to include learning about financial literacy in schools.

The hope is that future generations will not be affected by the same pattern as the current generation who are addicted to pinjol and judol.

In a broader context, when talking about financial literacy as a whole, crypto 'should' also be included in it.

What is Financial Literacy?

In mid-2024, the Education Standards, Curriculum and Assessment Agency, Ministry of Education, Culture, Research and Technology of the Republic of Indonesia published a module book entitled Financial Literacy Education, Implementation Guide for Education Units and Stakeholders.

Based on the module book, financial literacy is the understanding, skills and ability to apply good financial management concepts in everyday life in order to realize the financial welfare of individuals and society.

Without sufficient understanding of financial literacy, a person will have difficulty managing their finances and experience bias in assessing the priority of needs.

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Current Condition of Financial Literacy of Indonesian

According to the publication of the results of the National Survey of Financial Literacy and Inclusion (SNKLIK) released by the Financial Services Authority (OJK) in October 2024, Indonesia's financial literacy index was 65.43%.

Meanwhile, Indonesia's financial inclusion level in 2024 is 75.02%. Between financial literacy and financial inclusion in Indonesia in 2024 there are gap amounting to 9.59%.

Even though it shows an upward trend compared to 2022, we still need to realize that easy access to financial services (financial inclusion) in 2024 is not accompanied by an insufficient level of financial literacy.

Based on the latest data from the OJK above, at least to be a country with a healthy economy, the level of financial literacy must be slightly higher than the level of financial inclusion.

Pinjol and Judol: Financial Literacy Challenges

In the process of increasing Indonesia's financial literacy, the big problem faced is borrowing and judol behavior, not only experienced by the older generation, but also the younger generation.

Processed from the Financial Literacy Education module book, report Indonesia Financial Sector Development mention that As of December 2023, it was recorded that around 18 million people in Indonesia were involved in online loans (pinjol), with a total debt value reaching 59.64 trillion rupiah. 

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One of the prominent cases is a fraud that ensnared hundreds of students. The students were promised a 10 percent profit through online business, but instead they were trapped in debt. 

In addition, data from the OJK shows that bad credit among those aged 19-34 years will reach 730.03 billion rupiah at the end of 2023, showing the high debt problem among young people.

Financial Literacy as a Pinjol and Judol Solution

Responding to the complicated issues related to pinjol and judol mentioned above, understanding of financial literacy must be more widely disseminated and grounded.

Through simple approaches that are accessible to the general public, the behavior of pinjol and judol can undoubtedly be eroded.

Therefore, it is not wrong that recently the government has aggressively promoted financial literacy education in various educational units, starting from primary education, secondary education and senior education.

Financial Literacy in the Crypto Context

The presence of the Financial Literacy Education book which targets various levels of educational units should be appreciated.

However, it would also be better if the book contained a little something about crypto, considering that crypto has become a global financial phenomenon.

Apart from that, it is possible that crypto will increasingly dominate in the future along with advances in information technology and the internet which is supported by Artificial Intelligence.

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Crypto Today

The rapid development of cryptocurrencies encourages the emergence of new financial instruments that are different from traditional products, requiring special knowledge. 

Given that crypto-assets fluctuate rapidly and have high risks, a deep understanding is key so that the public is not easily caught up in speculation or fraud.

The Urgency of Crypto Material in Financial Literacy

Including crypto in the financial literacy curriculum is an important step in preparing society for the future. 

First, with enough knowledge, people can better understand the opportunities and risks in crypto investment. 

Unlike conventional investments, crypto is traded globally and is often not strictly regulated, making literacy about transaction security and risk management increasingly relevant.

Second, understanding crypto can encourage innovation and financial independence. 

Crypto enables fast and decentralized transactions, providing an alternative for those lacking banking services. 

Armed with sufficient financial literacy, people can take advantage of crypto technology to create new opportunities in business and investment that are more inclusive.

Lastly, including crypto in financial literacy helps young people develop a critical view of digital financial changes. 

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Final Note

Financial literacy is something that must be understood and mastered by Indonesian people today, along with the increasing complexity of the financial system.

Through financial literacy, people can avoid various carelessness due to momentary impulses or certain fraudulent schemes.

It doesn't stop there, crypto also needs to be included a little in financial literacy material, so that future generations are not immediately surprised by the existence of crypto.

If you are interested in learning about crypto, you can visit and read articles on the Bittime blog as a start to the world of crypto.

Reference:

Financial Literacy Education

2024 National Survey of Financial Literacy and Inclusion

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