Tirta Segara, SE., MBA, presenting "Financial Health During the Pandemic" at the 2021 Indonesia Millennials Financial Summit (March 25, 2021). (Photo: Courtesy)
Standard Chartered survey found that millennials aged 25-44 were the generation most financially impacted by the pandemic. In response, the Faculty of Economics and Business (FEB) Universitas Airlangga (UNAIR) collaborated with the Financial Services Authority (OJK) and PT Pegadaian (Persero) to hold the 2021 Indonesia Millennials Financial Summit online
The seminar, held via virtual Zoom Meeting, ran smoothly on Thursday, March 25, 2021. Tirta Segara, SE., MBA, a member of the Financial Services Authority (OJK) Board of Commissioners for Education and Consumer Protection, was the keynote speaker at the 2021 Indonesia Millennials Financial Summit .
Dean of FEB UNAIR Prof. Dr. Dian Agustia, SE., M.Si., Ak., CMA., CA., said the Indonesia Millennials Financial Summit is a collaborative seminar between the Financial Services Authority (OJK) and PT Pegadaian (Persero). The goal is to improve financial education and literacy, especially among youth, school, and university students.
"Financial inclusion and literacy are one of the government's policies to intensify various efforts to improve public knowledge in the financial sector," explained the Dean of the third-best faculty in Indonesia and ranked 401-450 in the world by QS WUR.
Tirta Segara, SE., MBA, Member of the OJK Board of Commissioners for Consumer Education and Protection, delivered a presentation titled "Financial Health During the Pandemic." He explained that the OJK plays a regulatory role in the financial services sector.
"The birth of the OJK marked a new era in the regulation and supervision of the financial services sector. The supervisory role in the financial services sector, previously carried out by Bank Indonesia and the Ministry of Finance, has since fallen under the authority of the OJK," he explained.
Tirta Segara further shared financial management tips for the younger generation. First, understand your financial situation. Next, young people must understand the difference between needs and wants and cultivate a culture of saving before spending.
"Be wise about debt, prepare an emergency fund, and ensure legality," he explained.
According to Tirta, financial literacy and education programs have become increasingly important and crucial during the pandemic, especially for Gen Z and Millennials. There are at least four reasons why financial literacy is crucial for the younger generation.
"First, the younger generation plays a critical role in the economy. In 2020, one in two Indonesians, a total of 145.4 million, were young," he explained.
Second, the level of financial literacy among the younger generation remains low. A 2019 national survey showed that the financial literacy rate among 15-17 year olds was 16 percent. Furthermore, the younger generation is also more financially vulnerable. Young people spend more money on pleasure than saving and/or investing to increase their assets.
"Finally, statistically, younger generations are more easily fooled by influencers. When investing, young people must pay attention to the two Ls: legal and logical," he said. (*)
Source: http://news.unair.ac.id/2021/03/26/dewan-komisioner-ojk-literasi-keuangan-milenial-rendah/