INTRODUCTION
Financial institutions such as banks and non-banks play an
important role in supporting the economy of every community, both large and
small income people to support their business, and one of the problems
experienced by almost all countries, including Indonesia is the problem of
poverty. In Indonesia, various seminars and meetings have been held to reduce
poverty, one of which is by making it easier for the public to access financial
institutions for all groups (Martasari & Mardian, 2015). Financial inclusion is all efforts
made to remove all obstacles that hinder people from using financial services,
where financial inclusion is also a national strategy to encourage economic
growth by reducing poverty, income distribution and financial system stability.
Several studies conducted by the world bank in various countries found that the
involvement of financial inclusion plays an important role in alleviating
poverty and encouraging economic growth (Purwanto, 2015). Financial literacy is a unit of intuition, ability,
knowledge, attitude, and actions needed in making financial decisions so that
an individual's financial well-being is achieved (Competencies, 2016). In addition, the Financial Services Authority defines
financial literacy as a form of improving quality in making decisions and
managing finances to achieve prosperity using knowledge, skills, and beliefs
that are applied to individual attitudes and behavior. The Association of
Chartered Certified Accountants states that the components of financial
literacy include insight into the concept of finance, understanding of
communication about a financial concept, ability to manage finances both
personally and within a company, as well as skills and accuracy in making
financial decisions in every situation (Aribawa, 2016).
Financial Inclusion is a comprehensive study in order to
eliminate various kinds of obstacles related to the use and utilization of
financial institution services by the public (Yanti, 2019). In addition, Bank Indonesia's National Strategy for
Financial Inclusion (SNKI) defines financial inclusion as the right for
every individual to access and obtain maximum services from financial
institutions in an informative and timely manner, at affordable costs, while
still paying attention to comfort and respect for their dignity and worth.
Financial inclusion is the availability of access for the public to take
advantage of financial products and/or services in financial service
institutions in accordance with the needs and abilities of the community.
Financial inclusion is a process to provide formal financial access for the
poor and low-income people (Nengsih, 2015). There are 3 things that are the goals of financial inclusion,
namely: first, to increase access for the public to formal financial service
institutions and financial products or services. Second, to increase the
diversity of the availability of financial products or services, and third, to
increase the use of financial products or services by the public.
Financial inclusion is needed by MSME actors to get
convenience in every business process. One of the supporting factors of a
business is capital. Fatmawati, Hasiah, Irmawati, and Istiyana (2019)
mention that the problems often faced by MSME actors are related to capital and
the marketing process. These problems can be overcome by facilitating access to
financial services. Ease of access to financial institution services will make
it easier for the public and business people to get capital to run each of
their business processes (Alimi & Indriani, 2018).
Financial literacy is needed by MSME actors, especially in
the process of preparing business financial reports. A business owner needs a
financial knowledge to make it easier to control finances so that business
performance will be more optimal (Dahmen & Rodríguez, 2014). According to Anggraeni (2016) financial literacy
directly has an influence on a person's mindset which in turn will affect the
way a person makes decisions related to finance and how to manage it. The
performance of MSMEs will increase along with the increase in financial
literacy of the perpetrators (Rahayu, 2017). A good literacy level makes business people more careful in
their operations and easier to manage so that business performance can be optimized.
Aribawa (2016) also said that decisions
taken by MSME actors related to finance must be accompanied by good financial
literacy. A business will develop in a better direction from time to time with
the right decision making.
The financial literacy of the Balinese people based on the
2019 National Survey of Financial Literacy and Inclusion (SNLIK) is 38.06
percent, while the level of financial inclusion is 92.91 percent. This implies
that the public's use of financial services and/or products is not balanced
with a high level of understanding in the midst of rampant cases of fraudulent investments
and online illegal
The Investment Alert Task Force has noted that within five
years there were 1,072 platforms that were closed and throughout 2022,
21platformswere closed. Meanwhile, the total number of illegal loans that have
been discontinued until October 2021 is 3,515 entities, where as of March 2,
2022, there are 102 legal loans registered and licensed at the OJK.
Losses due to illegal investment in Indonesia reached Rp. 117.5
trillion in the last 10 years. The number is predicted to be higher considering
the possibility that there are still people who have not reported. Therefore,
to prevent public losses due to fraudulent investments, it is necessary to
eradicate illegal investment practices including illegal online loans.
Micro, Small and Medium Enterprises (MSMEs) are business
sectors that produce various kinds of products and services and have an
important role in creating business fields as a way out in tackling the problem
of unemployment. MSMEs have great potential as a driver of community economic
activity, and can also be used as a source of income for most people in
improving welfare (Ministry
of Cooperatives and SMEs, 2011). In terms of the number of MSMEs, it
continues to increase but is not accompanied by slow and stagnant growth due to
problems experienced such as limited capital, lack of use of information and
technology, and low financial literacy in managing business finances. Financial
literacy is one of the important factors that MSME actors should have to make
it easier to manage and develop their businesses (Panggabean, Dalimunthe, Aprinawati, &
Napitupulu, 2018). Based
on the results of a survey conducted by the Financial Services Authority (OJK)
in 2019 showed that the financial literacy of MSME actors in Indonesia was only
38.03%, while from Bank Indonesia data the number of MSMEs reached 64 million,
meaning that only around 38 million MSMEs have used the product. banking.
Judging from this figure, the level of financial literacy of MSME actors is
still relatively low, meaning that it can be said that in utilizing financial
products and services from the banking sector it is still low and limited.
The development of MSMEs, however, does not go hand in
hand with the quality of MSMEs. Many of the MSMEs have start-ups but have less
than optimal performance. The advantages of small and medium enterprise (SME)
entrepreneurial activities such as increased personal wealth, independence, and
indirect consequences of entrepreneurial activities such as job creation are
maximized with financial literacy (Agyei, 2018; Kulathunga, Ye, Sharma,
& Weerathunga, 2020; Mabula & Ping, 2018a, 2018b; Suendang &
Darmawijoyo, 2020) SMEs thrive on the wealth of
their owners' resources because of the difficulty of separating ownership from
control. Many existing studies on the performance of SMEs have emphasized
financial resources. This study is based on the argument that financial literacy
and cultural values are the main resources of SME owners that can facilitate
the acquisition of their personal wealth. This happens because the development
and competitiveness of SMEs in general is still limited. Most MSMEs are only
able to produce, but have not been able to market their products better. Weak
marketing is not only a market problem, but many other aspects directly or
indirectly affect so that many MSME businesses are slow to develop, some suffer
losses, do not return on investment, some even stop their business (Agyei, 2018; Anggraeni, 2016; Bongomin, Ntayi,
Munene, & Malinga, 2017; Herawati, Candiasa, Yadnyana, & Suharsono,
2020; Hussain, Salia, & Karim, 2018; Sugiarti, Diana, & Mawardi, 2019;
Tuffour, Amoako, & Amartey, 2020).
The large number of Micro, Small and Medium Enterprises
(MSMEs) in Denpasar City is a separate asset that will strengthen the
foundation of the regional economy, in essence it can be a source of income for
local governments, besides that the participation of MSMEs can realize economic
growth, equity, and increase people's income. job creation and poverty
alleviation. MSMEs need to provide facilities to develop themselves through
various kinds of facilitation in various sectors, of course. In line with the
input values above, the empowerment of Small and Medium Enterprises needs to
be carried out in a comprehensive, optimal and sustainable manner through the
development of a conducive climate, providing business opportunities, support,
protection, and business development as broadly as possible, so as to improve
the position, role, and the potential of small and medium enterprises.
Empowerment of the people's economy is to increase the
income and welfare of the community as well as expand the field of workers, it
is necessary to improve and strengthen the ability of SMEs to become healthy,
strong and independent SMEs. Community economic development is a priority scale
to realize the importance of empowering SMEs. Sanur Kauh Village, which has a
total area of 386.0 Ha, is a village located in an area with a coastal area.
In Sanur Kauh Village, there are 147 MSMEs with various types of businesses.
Based on the survey conducted, there are problems faced by the community and
business owners related to the lack of understanding of financial literacy
which causes people to be tempted by illegal investments that provide quick
profits. Business owners in Sanur Kauh Village also experience limitations in
knowing access to finance, so this is an obstacle in developing their business.
Community Service carried out by the Faculty of Economics
and Business, Ngurah Rai University, which is currently collaborating with the
Regional Financial Services Authority VIII Bali and Nusa Tenggara as well as
the Bali Regional Development Bank, aims to provide an understanding to the
public regarding investment that is currently booming and an introduction to
the products issued. by financial institutions so that later the public and
business actors can understand legal investments and can understand where to
get funding in developing businesses and managing good financial management.
METHOD
In accordance with the problems seen in Sanur Kauh
Village, this community service is carried out by:
1)
Providing education to the public regarding
legal investments to improve financial literacy
2)
Providing education related to financial
institutions to support funding for business actors in Sanur Kauh Village
3)
Providing education related to financial
management for community life and for community business development in Sanur
Kauh Village
This community service program is carried out together
with village government officials and the community to identify the main
problems, analyze priority problems, and then offer solutions related to these
problems. The coaching method to support the realization of the service program
is counseling and assistance to the community and business actors in Sanur Kauh
Village. The activity involved 100 people from the community. The resource
persons for the activity were the Head of the Education Section of the Regional
VIII Bali and Nusa Tenggara Financial Services Authority and the Deputy Head of
the Bali Regional Development Bank Renon Branch who was accompanied by local
village officials.
RESULTS
AND DISCUSSION
Student Creativity Program (PKM)
activity began in early March 2022, where all team members held a coordination
meeting to determine the theme and target community of the PKM Activity.
It was determined that the PKM theme was the Financial Literacy
Development Program in Raising Public Awareness of Illegal Investments. The
team also decided that the participants were the community and micro-enterprises
in Sanur Kauh Village. The next stage, team members contacted the Head of Sanur
Kauh Village to coordinate the time, place and potential participants of the
socialization. It was agreed that the socialization activity was carried out
face-to-face on April 22, 2022, in the Multipurpose Room of the Sanur Kauh
Village Office. Given the implementation of PKM during the Covid-19
pandemic, this activity applies strict health protocols.
The socialization participants consisted of
100 people who were community and business actors in Sanur Kauh Village. The
resource persons who were presented at the socialization were the Head of the
Education Section of the Regional VIII Bali and Nusa Tenggara Financial
Services Authority and the Deputy Head of the Bali Regional Development Bank
Renon Branch who explained material related to the importance of financial
literacy in understanding the types or products of existing financial
services/services as well as providing related understanding. legal financial
institutions to the public and business actors in building and developing their
businesses.
Figure 1. Socialization regarding financial literacy
The socialization given to the community
related to the importance of knowledge about legal investments to avoid being
trapped in fraudulent investments that are currently rife. The low level of
financial literacy causes many people to fall into this, so that with the joint
education of the Financial Services Authority and Financial Institutions, it is
hoped that the community will no longer fall into this matter. On the other
hand, the education carried out is expected to increase financial inclusion by
using financial products/services at legal financial institutions, as well as
providing understanding to people who have businesses in developing their
businesses with business capital obtained through appropriate and legal
financial institutions so as to avoid the public. in illegal online loans.
CONCLUSION
Through Financial Literacy education that has been carried
out by the Faculty of Economics and Business, Ngurah Rai University together
with the Financial Services Authority and the Bali Regional Development Bank
Financial Institution, it is targeted to increase the number of community
literacy so that later it will be able to encourage increased utilization of
financial products and services in accordance with the needs of the people of
Sanur Kauh Village. in particular and the Indonesian people in general so as to
avoid illegal online investments and loans that are currently rampant. This
will motivate the financial services sector to improve public education and
proactively develop financial service products in accordance with the
ever-evolving needs of society. However, the most important thing about this
movement is that evaluations must be carried out in order to be able to
critically analyze programs that are already running so that they are effective
and quickly overcome the problems that exist in the community.
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