Digitalization and Access to Household Credit: Pre and Post COVID-19 Pandemic

Abstract

This study examines the impact of digitalization on access to household credit during the National Economic Recovery Program. Data from the National Socioeconomic Survey (Survei Sosial Ekonomi Nasional/Susenas) and Village Potential Statistics (Potensi Desa/Podes) from 2019 (pre-pandemic) and 2021 (one year post-pandemic) are used in this research. Using the binomial logit model-fixed effect, this research found that digitalization has a significant impact on access to household credit, both before and during the COVID-19 pandemic. The majority of households with access to credit are headed by males living in rural areas, who are married, working, graduated from junior high school or above, and are 30-59 years old. In line with the national economic recovery program, the government can accelerate financial inclusion by increasing access to household credit to all levels of the society without gender discrimination through banking digitalization.

Author

Cita Puspita Sari
Eny Sulistyaningrum

Reseach Area

National

Research Topic

Household Finance
Financial Institutions and Services
Economic Development
Research and Development
Monetary Policy, Central Banking, and the Supply of Money and Credit

Keywords

Digitalization
Credit Access
Financial Inclusion
Logit
Pandemic

Publication Type

Working Paper