By Angelique Timmer, Regional Director for Southeast Asia, Women’s World Banking
As the host of a recent discussion with H.M. Queen Máxima of the Netherlands, in her role as the United Nations Secretary-General’s Special Advocate for Financial Health (UNSGSA), we at the Women’s World Banking (WWB) learned firsthand how young Indonesians spoke candidly about how they navigate money in an increasingly digital economy. While access to digital financial services has expanded rapidly, many shared concerns about their ability to use these tools safely and confidently. The discussion highlighted a widening gap between opportunity and capability, one that now poses a national economic risk and underscores why Digital Financial Capability (DFC) must become a strategic priority.
Our study shows that while access to digital financial services in Indonesia is rapidly expanding, many young adults still struggle with the behavioral and practical skills needed to use these services safely. The data is telling: 40 percent of students reported misusing emergency funds for impulsive spending and using their emergency savings for non-essential spending; 20 percent rely on TikTok or YouTube as their primary source of financial learning; and many take on digital credit without fully understanding repayment risks. The question is simple yet critical: will Indonesia’s youth become informed, resilient financial decision-makers or be swept into cycles of debt, misjudgment, and long-term vulnerability?
To become informed and resilient financial decision-makers, young people need strong DFC. DFC refers to the ability to make sound financial decisions when using digital tools such as mobile banking, e-wallets, digital credit, and investment platforms. Unlike financial literacy, which focuses on knowledge about money, DFC emphasizes the practical skills needed to apply that knowledge safely and confidently in a digitized financial system. These capabilities are fundamental to long-term financial health.
For this reason, DFC must be embedded systematically across education, policy, and financial-sector practices. It cannot be left to informal learning or personal trial and error, especially when the financial landscape is evolving faster than most young people can keep up with. A structured, system-wide approach is needed so that every young Indonesian has the practical skills, behavioral readiness, and confidence to navigate digital financial services safely.
How Indonesian Youth Experience Financial Decision-Making in a Digital Landscape
Several participants during the Youth Financial Health Discussion with Queen Máxima described how they often feel expected to understand personal finance simply because everything is now digital, even though very few have ever been taught how to manage money in a structured way. Many shared that they navigate financial decisions largely on their own, relying on trial and error.
Others pointed out how fragmented the financial ecosystem feels to them. Rather than a single, coherent system that supports saving, planning, and learning, they encounter scattered platforms and disconnected products, making it harder to build consistent financial habits or trust the tools available.
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