**SUNGAI RAYA** - The Acting Governor of West Kalimantan (Kalbar), represented by the Assistant for Economy and Development (Assistant II) of the Regional Secretariat (Setda) Kalbar, Ignasius IK, officially opened the 8th Multifinance Day 2024 at Gaia Bumi Raya City Mall in Kubu Raya District on Friday, October 11. The event, organized by the Indonesian Financing Companies Association (APPI), runs from October 11 to 13, 2024, and is attended by APPI Chairman Suwandi Wiratno.

In his speech, Assistant II Setda Kalbar Ignasius IK expressed appreciation for the holding of Multifinance Day 2024 in Kalbar. He emphasized the importance of the event as a means of education and financial literacy, as well as supporting financial inclusion and the financing industry. He also highlighted its alignment with the month of financial inclusion and the national program for financial literacy launched by the Financial Services Authority (OJK) on August 22, 2024. "This is relevant to the TPAKD (Regional Financial Access Acceleration Team) 2024 program, aimed at accelerating the utilization of non-bank financial service products that are tailored to community needs," he stated.

He further mentioned that the government continues to pay special attention to the development and financing of Micro, Small, and Medium Enterprises (MSMEs) through the People's Business Credit (KUR), hoping that government subsidies can help revive and advance MSMEs, thus providing a multiplier effect on economic growth at both local and national levels.

"The role of financing companies is equally important as an alternative source of financing for people to purchase goods or meet capital needs, as well as for easier and relatively quick access to loans. If accompanied by appropriate financial planning, this can drive economic growth, create jobs, and enhance competitiveness," he explained.

At the same venue, APPI Chairman Suwandi Wiratno stated that a total of 31 financing companies are participating in this Multifinance Day event. He noted that the main goal of the activity is to educate the public about taking loans.

Suwandi emphasized the importance of knowing exactly whom to borrow from and ensuring that the lending company is trustworthy. "When borrowing, it should match one's ability and needs, not because of trends or peer pressure. One should avoid borrowing simply to keep up with others but being unable to repay. Choose loan products that fit your financial situation," he said.

He added that there are now many loan products available, including Sharia products that are non-usurious for those who wish to avoid interest. Additionally, there are loans offering installment payment schemes over three or six months, adjustable to individual financial capabilities.

"The aim is to enhance financial literacy so that before borrowing, individuals think carefully and discuss with lending companies that fit their financial abilities. Each company certainly offers different products," he concluded.

Meanwhile, OJK's Director of Financial Literacy and Education, Horas V.M. Tarihoran, explained that Multifinance Day was first held in 2016 in Lampung Province during the month of financial inclusion. Its purpose is to educate the public about the importance of the financing industry for societal welfare and economic development. "As the name suggests, multifinance supports all personal, family, and industrial needs. Currently, digital finance is developing rapidly, with concepts like pay later, which differs from online loans," he clarified.

Horas assured that OJK strongly supports programs like this, as public understanding of financial literacy remains quite low. According to their 2023 survey, the financing literacy level is only 47 percent, with financial inclusion still below 15 percent, indicating a need for greater inclusion in the financing sector. "However, we continue to hope for healthy financial inclusion," he added.

With effective financial literacy education, the hope is to avoid challenges or issues in the financing industry, such as defaults. "With OJK in place, we can detect individuals with past defaults, making future credit applications more challenging. This is still not widely understood by the public, leading to frequent defaults when applying for credit," he concluded.