Purpose

This paper aims to investigate how microfinance institutions’ clients in Indonesia conceptualize financial capability. Previous investigations on the concept were mostly in the lenses of those in the developed economies.

Design/methodology/approach

A qualitative method was used, in which focus group discussions (FGDs) and interviews were conducted with microfinance institutions’ clients and management in four provinces in Indonesia: DKI Jakarta, DI Yogyakarta, West Nusa Tenggara and South Sulawesi.

Findings

The results exhibit some similarities with those of previous studies that highlight the importance of financial management and financial planning for strategic purposes. However, financial literacies perceived as less important due to the lack of awareness of the concept and its benefits.

Research limitations/implications

This research is only focused on certain groups of the population which implies its limited generalizability. One important implication is for policymakers and scholars to re-examine the value of financial literacy within the context of Indonesia. Although the interviews reveal skepticisms on the instrumental value of financial literacy, robust investigations are further needed.

Originality/value

This study is the first that uses the participatory method to define financial capability as understood by microfinance institutions’ clients in Indonesia.

中文翻译：

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概念化财务能力：来自印度尼西亚的证据

目的

本文旨在调查印尼小额信贷机构的客户如何将财务能力概念化。以前对该概念的研究主要集中在发达国家中。

设计/方法/方法

使用定性方法，其中在印度尼西亚四个省（DKI雅加达，DI日惹，西努沙登加拉和南苏拉威西省）与小额信贷机构的客户和管理层进行了焦点小组讨论（FGD）和访谈。

发现

结果与以前的研究有一些相似之处，这些研究突出了财务管理和财务计划对战略目的的重要性。但是，由于缺乏对该概念及其益处的认识，金融知识被认为不太重要。

研究局限/意义

这项研究仅针对特定人群，这意味着其普遍性有限。对决策者和学者来说，一个重要的含义是重新审视印度尼西亚背景下金融知识的价值。尽管访谈揭示了对金融知识的工具价值的怀疑，但仍需要进行深入的调查。

创意/价值

这项研究是第一个使用参与式方法定义金融能力的研究，印度尼西亚的小额信贷机构的客户对此进行了理解。