Financial sector development is critical for reducing poverty through better access to financial products and services for the poor and low-income families.

The Indonesian financial sector remains small and far more dominated by banks than its regional peers. Some of the reasons for the small size of the overall financial sector are:

• fragmented regulatory structure,
• regulatory framework not in line with international best practices, and
• an enabling environment that is less conducive to financial sector development,
• including lack of diversity in capital market products