THE IMPACT OF COMMUNITY - BASED (ARISAN) TRAINING TOWARD

FINANCIAL LITERACY AND FINANCIAL INCLUSION LEVEL AMONG

MIDDLE-UP WOMEN IN BANDUNG
1
Yunita Buana Putri, 2Yunieta Anny Nainggolan, Dr.
1
School of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10, Bandung 40132, Indonesia
2
School of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10, Bandung 40132, Indonesia

Abstract
Indonesia as one of the fastest growing economist countries, Indonesia ranked 15th in the G20 and cause the
society income to rise which leads to various options of financial products offered to Indonesian society.
However, Indonesian women have not utilized financial products efficiently even though it gives lot of
advantages for them. This become a concern due to women vital role in economy and society. Thus, this
research aims to examine does the community-based training able to increase financial literacy and financial
inclusion intention level among middle-up income women in Bandung. MANOVA and paired sample t-test
utilized to see whether the community-based training is statistically significant to changes financial literacy
and financial inclusion intention level. The findings show that community-based training does have positive
impact toward both financial literacy and financial inclusion intention where education level is the most
significant determinant toward financial literacy score after the training. According to the findings, this study
suggest that community-based training can be developed to be the one of OJK program as the alternatives to
increase women’s financial literacy and financial inclusion in Indonesia.

Keywords: Community-Based Training, Financial Inclusion Intention, Financial literacy, Investment, Women

Background
Indonesia is one of the fastest growing countries in terms of economy with GDP reached USD 923.9
million in 2017 makes Indonesia ranked 15th on G20. Indonesia GDP per capita also increase indicates
the rises on Indonesian society income with 8.1% increase in GDP per capita . Based on Keynes (1936),
absolute income is the main determinant of savings and it will in-line with the increase on the absolute
income (disposable income) while the other things held constant. In other hand, access to financial
services will increases 3% - 5% savings rate at minimum (Aportela, 1999 cited in Rao and Baza, 2017).
Thus, the Indonesia’s rapid growth on the economy with more than half (67.8%) of the fourth largest
population in the world using financial services, there are numerous options on investment product being
offered. Unfortunately, women in Indonesia have not effectively utilize the wide-range of investment
products, according to OJK in 2016, only 25% of women is well-literate and 60% of them utilize
financial products which lower than men in Indonesia and average women globally.

Low level of women financial inclusion become a concern as women have important role in economy
and society as half of Indonesia’s population is women and predicted to be dominate the population in
2023. Moreover, based on the survey done by International Finance Corporation (2016), women in
Indonesia owned 52.9% of small-sized enterprises and 34% of medium-sized enterprises and women
labor force participation rate in 2017 has reached 50.74% and take roles in managing including money
their household. Therefore, low level of financial inclusion brings lot of disadvantages as financial
inclusion as it will allow women for economic decision making, enhancing purchasing power, control
income and savings, access various financial (George and Thomachan, 2018) protect women from
unexpected short-term shock which enables them to make saving and investment decision in long-term
period (George and Thomachan (2018), and Mwangi and Atieno (2018)). Women in Bandung which
considered to be urban area, financial supply has been well-provided and makes it not the problem to
the low financial inclusion as 62% of bank branch in urban area in Indonesia can be reached less than
10 minutes compare to rural area only 31% of bank branch located less than 10 minutes (The World
Bank, 2010). Hence, the demand side of the financial services must be considered which is women’s
low level of financial literacy as the key barriers.

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Financial literacy has huge impact on financial inclusion as higher percentage of literacy will improve
the financial inclusion especially for territory with financial inclusion more than 20% (Dutta and Dutta,
2008). Improving financial literacy will rise the skill and ability in using financial services and get
benefit from it and help them to compare and select financial products which fit the most to meet their
financial goals (George and Thomachan, 2018). Moreover, women’s role in society makes it more
important for them to be financially literate as their responsibility to transfer their knowledge among
generations. Thus, OJK makes women as one of the targets to increase their financial literacy level to
increase the inclusion toward broad range of financial and investment product. Due to the importance
of financial literacy and financial inclusion increase among women in Indonesia, this research aims to
analyze whether financial education toward urban women will increase level of financial literacy and
how it impacted to financial inclusion intention by women with middle-up income in Bandung. The
financial education is done through community-based training as according on the research done by
Gibson, McKenzie and Zia (2014), training increase finance knowledge and it led to changes in financial
behavior as the knowledge being acquired are used for comparing different methods in financial activity
and community being chosen is arisan as study by Ingvarson et al. (2007) found that women learn better
in group consist of their friends and relatives. Therefore, the hypothesis being obtained in this research
is financial training in community-based program for middle-up income women in Bandung improves
financial literacy and financial inclusion intention of the members.

Methods
The type of the research is quantitative research more precisely experimental research where the data
being used is primary data obtained from middle-up income women in Bandung who joined arisan
where questionnaire are distributed before the training (pre-test) and after the training (post-test) to test
the hypothesis regarding the impact of group-based training to women’s financial literacy and financial
inclusion intention. The questionnaire consists of advanced financial literacy test and financial inclusion
intention in saving and investing. Advanced financial literacy is the knowledge needed by individuals
to be capable on make saving and investing decisions (Lusardi ,2008), Thus, the questions consist of
fundamental concepts including the relationship of risk and returns; the work of stock, bonds, and mutual
funds; and basic asset pricing. The pretest and posttest are conducted on the same day to increase internal
validity by reduces the history effect and reduces experimental drop-out rate Uzarewicz and W.
Lawrence Neuman (2003). The sampling technique being used is non-probability sampling which is
purposive sampling as there is no lists of arisan in Bandung makes it impossible to use probability
sampling. The purposive sampling is chosen because it being used to do the research with specialized
sample in this research is women whose annual income IDR36 million – IDR120 million) who joined
arisan in productive age (15 – 64 years old). As this study is experimental analysis thus it requires small
number of the sample ranged from 30 to 100 (Uzarewicz and W. Lawrence Neuman, 2003). Thus, the
sample size of the research is 100 middle-up income women in Bandung who incorporated in arisan.

After the data being obtained, the respondents’ characteristics are summarize using the descriptive
statistics to ease the understanding. From it, the respondents’ characteristics can be obtained from the
demographic characteristics, financial literacy level and financial inclusion intention are obtained for
further research. To measure financial literacy level and financial inclusion intention, simple weighted
average method is used to define the score. Moreover, to see whether financial literacy level and
financial inclusion intention before and after the community-based training can be increased or not, the
survey results are being analyzed using MANOVA. MANOVA is a statistical technique that being used
to calculate the significance test of the mean differences simultaneously between groups for two or more
dependent groups (Sutrisno and Wulandari, 2018). Thus, the mean (the outcome) of each dependent
variable for the before and after the training are obtained, are there any differences before and after the
training (independent variable) on financial literacy level and financial inclusion intention (dependent
variables). Afterwards, the multivariate tests for dependent variables combined and tests of between-
subject effects or the univariate test is for the dependent variables separately are performed. Both tests
being used to indicate if training is statistically significant as the cause of the changes on the two
dependent variables being combined. If the significance below 0.05 then the community-based training
is statistically significant for differences in the outcome of financial literacy level and financial inclusion

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intention level before and after the training. Thus, it answers the hypothesis that the group-based training
does improve the financial literacy level and financial inclusion intention. On the contrary, if the
significant above 0.05 it applies the opposite way. So, the answer is the group-based training does not
improve the financial literacy level and financial inclusion intention.

To show the difference in respondents’ characteristics generate different result on before and after the
training, cross-tabulations analysis is performed. According to Colwell and Carter (2012) cross-
tabulations commonly known as cross-tabs is exhibiting the summary of the distributions of two or more
variables, it allows the author to examine the relations of the frequency of one variable to one or more
other variables. The frequencies of the data are tabulated based on the categories or class interval of the
variables being compared. The categories or the class interval needs to be mutually be exhaustive and
mutually exclusive which means all the data must be included in range of the data and the data must
include in one class interval only. The data that would be used for the cross-tab analysis are age, marital-
status, number of dependent children, education respondents’ job, monthly income, financial literacy
self-assessment, experience in doing investment and respondents’ self-assessment toward their
experience in doing investment to see the how to the respondents’ different characteristics affect the
changes of financial literacy level and financial inclusion intention before and after the training for each
category. Moreover, the OLS regression also performed to see which demographic factors significant to
affect the changes on financial literacy and financial inclusion, financial literacy and financial inclusion
score after the training

The validity is measured using face validity is a subjective measurement toward a specific
construct toward non-experts which is the respondents which represent the sample of the research’s
object. The face validity test assesses the questionnaire regarding the feasibility, readability, consistency
of the style and formatting, and the language used is clear enough for the sample who took the test
(Taherdoost, 2016). Moreover, expert validity also involves to judge whether the questionnaire’s content
which in it including construct relevance, representativeness, and technical quality of the test (Crocker,
2015). The reliability in this research aiming to find out whether the questions in the questionnaire as the
tool is appropriate to test the financial literacy and financial inclusion intention of the respondents
(Carlota, 1987 cited in Rosaroso, 2015). Meanwhile using Cronbach’s alpha and other reliability
statistical method in SPSS are measuring the similarity between respondents’ answer (Papadopoulos and
Giovanis, 2018). Thus, the reliability test using Cronbach’s alpha or other reliability test is not necessary
as in this research the questionnaire is generated from several references have been proven are appropriate
to measure financial literacy and financial inclusion

Results and Discussion.

The questionnaires are being distributed to 101 middle-up income women in Bandung with various
demographic profile. The age range of respondents age are 20 years old – 60 years old, 19.8% of the
respondents are 21 – 25 years old, 67.3% are married, 45.5% bachelor’s graduate, 42.6% do not have
dependent children, 75.2% are Chinese, 85.1% live in big city, 35.6% work as housewives, 45.5% has
monthly income ranged from IDR 5,000,000 – IDR 15,000,000, 52.5% respondents’ partner work as
businessmen, 53.5% of the respondents consider themselves has average financial knowledge, 74.3% of
the respondents have done investment, and 53.5% consider themselves are beginner in doing investment.

After the questionnaire distributed before the community-based training, the financial literacy level of
the respondents before the training are obtained. From the scale 0 – 100 the score on each of the
respondents are obtained and summarized on Table 1. From the results 83.2% of the respondents have
low financial literacy level, 15.8% have moderate financial literacy level and 1.0% have high financial
literacy level. On average the middle-up income women have low level of advance financial literacy as
the financial literacy index is 50.09 which below 60. The variation or the dispersion of the data neither
too high nor too very low as values of the standard deviation is 12.21.

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Table 1 Financial Literacy Level

Financial Literacy
Level
Mean 50.090009
Median 50
Std. Deviation 12.2133276
Min 0
Max 100
The results suggest that the respondents are tend to be overconfidence as 53.5% of them consider
themselves to have average financial literacy knowledge and 37.6% have good financial literacy
knowledge. Meanwhile, the test show most of them have low level of financial literacy. This finding in-
line with previous study by Karaa (2016) shows that respondents often overconfident with their skills and
knowledge which led to poor financial decision making and cause some losses. Therefore, it is necessary
for the respondents to be aware with their own financial literacy knowledge to avoid some losses and
increase financial literacy level to be able making favorable financial and investment decision.

For financial inclusion intention, the questionnaires are constructed with rating questions toward various
type of ways to save money and investment. On the average, the respondents’ intention to be financially
inclusive are still indifferent to use various type of investment to manage their excess money as the
average score is 3.33 from the scale 1 – 5 with one for not attracted to be inclusive in the type of the
investment and 5 to be highly attractive to use the investment product to take care of their money which
shown in table 3.
Table 2 Financial Intention Inclusion Statistics

Financial Inclusion Intention

Mean 3.33
Median 3.36
Std. Deviation 0.41
Min 1
Max 5

Moreover, from the results of respondents’ financial inclusion intention, out of 101 respondents before
any treatment conducted are majorly indifferent to save their excess money at home (53%), bonds
(50%), stock (36%), arisan (56%), financial product with guaranteed capital (44%) and without
guaranteed capital (40%). Meanwhile, the respondents are interested in saving their money in bank
(45%), in deposit (52%), gold (50%), land or building (43%), and mutual fund (37%). The alternatives
gained the highest percentage where the respondents are highly not attracted to use to manage their
money is stocks (9%), uninterested is financial product without capital guarantees (37%), indifferent is
arisan (56%), interested using deposit (52%) and they are very interested in investing to land or building
(32%). As lot of the respondents are classified as low financial literacy level, the result of attractiveness
of the products are accordance to research done by Rooij, Lusardi and Alessie, (2007). Households tend
to not attract and have low usage of stocks when they have low financial literacy level due to their lack
of understanding of stocks and stocks market

After the pretest score are obtained, the MANOVA are performed to see whether the community-based
training have positive impact toward financial literacy and financial inclusion intention. As MANOVA
is one of mean different test across groups, the descriptive statistics of the score for both financial
literacy and financial inclusion intention before and after the training are being executed which can be
seen in Table 3

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Table 3 Descriptive Statistics

Financial Literacy Std.

Training Mean Deviation N
Financial Literacy Before Training 49.9531 12.40485 97
Level After Training 76.2679 10.16781 95
TOTAL 62.9735 17.38471 192
Financial Inclusion Before Training 3.3271 0.35176 97
Intention After Training 3.4746 0.30418 95

TOTAL 3.4001 0.33645 192

The descriptive statistics with the higher mean the better, the scale for financial literacy level is 0 to 100
and for the financial inclusion intention is from 1 to 5. As shown in Table 3, the mean for both financial
literacy level and financial inclusion intention level are increased after the respondents receive the
intervention which is the community – based training. To see whether the community-based training is
statistically significant in the mean changes of financial literacy and financial inclusion intention level,
multivariate – test is performed with the results are represent by Table 4

Table 4 Multivariate – Test

Hypothesis Noncent. Observed

Effect Value F Error df Sig.
df Parameter Powerc
Community Pillai's 0.576 128.593b 2.000 189.000 0.000 257.185 1.000
- Based Trace
Training Wilks' 0.424 128.593b 2.000 189.000 0.000 257.185 1.000
Lambda
Hotelling's 1.361 128.593b 2.000 189.000 0.000 257.185 1.000
Trace
Roy's 1.361 128.593b 2.000 189.000 0.000 257.185 1.000
Largest
Root

Using multivariate tests, the two dependent variables consist of financial literacy level and financial
inclusion intention are combined and being assessed. The four multivariate tests indicate that all of them
are statistically significance. Based on table 4.8 all of the significances are equal to 0.000 which is lower
than 0.05. The power of statistical test is 1.000, means the sample size and effect size were sufficient to
support significant differences is detected.

Differ from multivariate test which all the dependent variables are combined being test the test between
– subject effects evaluate each variable separately. The test between – subject effects result is being
reflected on Table 5 below it can be seen that the significance of the financial literacy level is equal to
0.000 and financial inclusion intention equal to 0.002 both are lower than 0.05. The results indicate that
the differences of the means on both financial literacy and financial inclusion intention are statistically
significant. As the multivariate test and test between – subject effects are both statistically significant,
the null hypothesis of the research being rejected. Therefore, there is significant impact from the group-
based training as the intervention toward the financial literacy level and financial intention inclusion of
the member (main-effect.).

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Table 5 Test Between – Subject Effects

Dependent Type III Sum Mean Noncent. Observed

Source df F Sig.
Variable of Squares Square Parameter Powerc

Corrected financial 33234.898a 1 33234.898 257.838 0.000 257.838 1.000

Model literacy level
financial 1.045b 1 1.045 9.649 0.002 9.649 0.871
inclusion
intention

Furthermore, the percentage of financial literacy level also changing in positive way due to the
community-based training. After the community – based training, the percentage of low financial
literacy level is decreasing from 83.2% to 38.6% while moderate financial literacy level increased from
15.8% to 51.5% and High Financial Literacy level increase from 1% to 9.9%. The positive impact of
financial literacy training toward financial knowledge is consistent with the study done by Akca et al.
(2018) and Hospido, Villanueva and Zamarro (2015). The increase of financial literacy level due to the
community-based training also impacted to the respondents’ attractiveness to be financially inclusive.
There is lot of changes in bonds, stocks, and mutual fund where respondents are more attracted to use
these products as their alternative to manage their excess money.

Moreover, the increase on respondents’ attractiveness also can be seen from their willingness to invest
their money in the investment products that gives 19.99% return which is the return of IHSG. The
attractiveness of investing in stock with return equal to 19.99% are increasing from 55% to 81%. To test
whether the changes is statistically significant, the paired-sample t-test is performed. The mean of the
respondents being attracted with the investment product is increasing from 0.55 to 0.81 as it can be seen
from table 6. Moreover, from table 7, the mean changing are statistically significant as the significance
score = 0.000 which lower than 0.05. Therefore, the community-based training is statistically significant
to increase financial inclusion intention among middle-up income women

Table 6 Paired Samples Statistics

Std. Error
Mean N Std. Deviation
Mean
pretest 0.55 101 0.500 0.050
posttest 0.81 101 0.393 0.039

Table 7 Paired Samples Test

Paired Differences
95% Confidence
Std. Sig. (2-
Std. Interval of the t df
Mean Error tailed)
Deviation Difference
Mean
Lower Upper
pretest - -0.257 0.462 0.046 -0.349 -0.166 -5.605 100 0.000
posttest

The result is in accordance with the research conducted by Rooij, Lusardi and Alessie, (2007) which
state people with higher financial literacy level are more attracted to investing their money in stocks.
Moreover, the outcome also in-line with research by Hogarth (2006), people with who possess higher
level of financial knowledge will have better financial management behavior and they more actively
engage with financial products.

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As community-based training are statistically significant in increasing both financial literacy level and
financial inclusion intention, this research also examine the demographic factors influence the financial
literacy changes and financial inclusion intention changes using cross – tabulations. The low changes
for financial literacy are them whose changes are ranged between 0 to 20, medium changes ranged from
>20 to 40, and high changes defined as those whose changes between >40 to 60. Meanwhile for financial
inclusion changes the low changes are classified for them with changes range from 0 to 0.25, medium
changes ranged from >0.25 to 0.5, and high changes are between >0.5 to 0.75. The highest changes on
financial literacy level are those whose age between 21 – 25 years old, unmarried, has four dependent
children, D3 and academy graduates, work as college students, monthly income ranged from
IDR25,000,001 – IDR 35,000,000, take financial decision with their partner, considered themselves to
have bad financial knowledge, they who initially do not want to participate in any investment, and
consider themselves as beginner in doing investment. Whereas, those who generates the highest changes
on financial inclusion intention are respondent whose age ranged between 51 – 55, has been separated
or become a widow, have four children, D3 graduates, work as business women, monthly income less
than IDR 5,000,000, other family member who take their financial decision in their household, consider
themselves has average financial knowledge, initially do not want to participate in any investment, and
consider themselves have average experience in doing investment.

From the cross-tabulation results, it indicates that younger (21 – 25 years old) who works as college
students generate high changes on financial literacy after community-based training as they still actively
use the cognitive skills and abilities which correspond to research done by Korniotis and Kumar (2007)
which finds that as the more people become aged, the cognitive abilities are declined. Also, younger
respondents’ marital status is mostly unmarried which makes this groups have higher percentage on high
financial literacy changes. The result of the relationship between marital status and financial literacy is
in line with the previous research by Taft, Hosein and Mehrizi, (2013), people who has married are more
financially literate. The respondents’ age and type of occupation not just influence the financial literacy
changes but also the financial inclusion changes. The age of respondents results differently in the way
they attract to be financially inclusion. Follows the study of Abel, Mutandwa and Roux (2018) which
said that financial inclusion is increasing until certain age and after that it decrease. From the age less
than 20 still have low changes until the age between 51 – 55 the intention tends to increase and
afterwards it decreases on the age 56 – 60. Moreover, financial inclusion intention changes also have
relations with the respondents’ job. Women who run their own business, have highest financial
inclusion intention changes because they who work as businesswomen are more attracted to be
financially inclusive due to the positive impact of financial inclusion toward the performance and the
growth of businesses especially SMEs (Ibor, B. I.; Offiong, A. I.; Mendie, 2017).

The higher number of dependents children, the larger household size. The study by Amendola et al.,
(2016) find that the possibilities of the poverty among the household are increase in linear toward the
household size. Whereas, financial inclusion could help household to increase their welfare (Seck, Naiya
and Muhammad, 2017). Therefore, for women with larger household size the investment topic is become
more interesting for them which represent in the level of financial literacy changes and their interest to
be financially inclusive surpass the other group. Moreover, women who have lower financial income
are reduce their possibility to be financially inclusive and they are also object with the minimum
payment of having financial services (Clamara, Peña and Tuesta, 2014) and they are more focus on
fulfilling their short-term needs than the long-term one (SOFIA, 2017). Therefore, after the training they
gain new knowledge regarding various alternative of investment, respondents’ intention to be financially
inclusive is increase as they able to evaluate and pick the best investment to suit their needs.
Furthermore, income have positive relations with financial inclusion (Zins and Weill, 2016) which
generate the changes on financial inclusion intention among higher income women is not as much as
those with lower income because they have known, used, or interested in doing investment on certain
product before they receive the training

Women who do not want to participate in any kind of investment have the highest changes on both
financial literacy and financial inclusion intention. The respondents who are not interested to participate
in any investment product may have little knowledge about it due to their lack of interest, they become

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passive read up things related to investment. Thus, after they receive training and learned more about
new thing regarding investment compared to the other group, thus most of them have high changes. In
addition, as their understanding regarding investment increases, they might find investment are
beneficial for them therefore they are who initially do not participate in any investment product, they
intend to be financially inclusive which makes some of them have low and high changes in financial
inclusion intention. The last demographic characteristics which being discussed in this research is the
respondents’ self-assessment regarding the knowledge in term of financial. The results of the changes
on financial literacy that being affected by respondents’ self-assessment is in accordance to the research
on Dunlosky et al. (2013) that people who are overconfident with their capabilities are tends to fail in
achieving the learning objectives meanwhile, the one who are accurate in assessing their skills and
abilities are more effective to be trained and guide in achieving the learning goals. Thus, it is important
for women to be aware with their level of financial knowledge to achieve their learning goal effectively.

After done the crosstabs analysis to determine which demographic factor are statistically significant to
the that influence changes in financial literacy and financial inclusion intention the most, OLS regression
is performed. There are eight models of the OLS regression that has being run to avoid multicollinearity
between respondents’ experience in doing investment and respondents’ self-assessment regarding their
experience as the independent variables. From the results, model involving experience as the
independent variable, self- assessment has 5% level of significance to financial literacy changes, if the
respondents’ considered them to have bad financial knowledge, then the financial literacy changes are
increasing by 10.317. While on table 4.34 the financial inclusion score after the training have negative
relationship if respondents have though they have bad knowledge regarding financial therefore, it will
decrease financial inclusion score after the training by 0.330. The results also show that education is
positively correlated with financial inclusion score after the training which means if the respondents are
categorized as bachelor’s graduate then the financial inclusion score after the training will increase by
0.174. where experience-assessment is one of the independent variables, the relations of self-investment
toward financial literacy changes is lower with 10% level of significance. The outcome summarizes on
table 4.35 indicates if respondents’ self-assessment is categorized as bad, then the financial literacy
changes will increase by 9.475. Whereas, with 5% level of significance bad self-assessment cause
decrease on financial inclusion intention score by 0.313 due to the negative sign which means it have
negative relations

The other demographic factor which statistically significant is the level of respondents’ monthly income
to financial inclusion intention changes. The OLS regression model using experience as the independent
variables shows that income have 5% level of significant and the positive sign on the coefficient means
respondents whose monthly income ranged IDR5,000,000 – IDR15,000,000 is positively related toward
financial inclusion intention changes. Therefore, if the monthly income of the respondents are IDR
5,000,000 – IDR 15,000,000 then financial inclusion intention changes by increasing the level of
financial inclusion intention as much as 0.083. It also shown on the regression model with experience
self-assessment even though the significance level is 10%, if the respondents’ level of monthly income
is range between IDR 5,000,000 – IDR 15,000,000 the financial inclusion intention changes will
increase by 0.077. the OLS regression model using experience as the independent variables shows that
income have 5% level of significant and the positive sign on the coefficient means respondents whose
monthly income ranged IDR5,000,000 – IDR15,000,000 is positively related toward financial inclusion
intention changes. Lastly, education is the demographic factors which has relations with the financial
literacy score. The significance level of education is 1% toward financial literacy score after the training.
If the education level is bachelor’s graduated, it has positive relations with financial literacy score after
the training increase by 5.912 on the OLS regression with experience and it will increase by 5.991 on
the table 4.40 which represent the regression with experience self-assessment. The positive relation
between education and financial literacy score after the training is in line with previous research done
by Santoso (2013) where people with higher education have higher financial literacy level.

Based on the results being obtained from the research, to improve the financial literacy level and
financial inclusion intention, OJK could create the program where the training is conducting in small
group through various organizations as the media to conduct financial education. As suggest from this
research, the community-based training do give positive impact to the level of financial literacy level
and financial inclusion intention of women which could help the OJK program which one of the focuses
in increasing women’s financial literacy and financial inclusion intention For further study, the object
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can be changed and being restructured to see the impact of community-based training to rural area and
women with middle – low income or other segments based on the study which become the interest or
have high urgency to be analyzed. Moreover, the type of the community as the intermediary to conduct
small-group training could be change such as women entrepreneur community, Moslem women
community, women who joined PKK and other community. Lastly, the further examination to
complement the result is to analyze the actual women’s financial inclusion level after joining the
community-based training as this research only measure the intention to be financially inclusive. .

Conclusions
Women in Indonesia have lower financial literacy and financial inclusion than the average of Indonesian
citizens (OJK, 2017) whereas women are currently half of the population in Indonesia and predicted to
dominate the population in the future. Moreover, women have very vital role in economy and social.
Due to the importance of women, this research wants to increase their financial literacy level and
financial inclusion with different approaches which through community-based training as from previous
research done by Ingvarson (2007), women are better to learn within the group consist of their friends
and relatives. Therefore, this research aims to evaluate how does community-based training through
arisan could increase financial literacy level and financial inclusion intention among middle-up income
women in Bandung.

To know the increase of the training, this research evaluates the current (before the training) level of
financial literacy level and financial inclusion intention among middle-up income women in Bandung
through the pretest. The results show that women’s level of advanced financial literacy is still low with
total of 101 respondents, 83.2% of them have low level of financial literacy, 15.8% of them have
moderate financial literacy and only 1% have high level of financial literacy. Moreover, the average
score of financial literacy score is 50.09 out of 100 which consider them have low financial literacy
level. The financial inclusion intention score means is 3.33 from the maximum score of 5 which indicates
that the women are still hesitant to be financially inclusive.

After identifying the current level of financial literacy and financial inclusion of middle-up income
women in Bandung who are incorporated, the effect of community-based training is being tested using
the MANOVA. The results show that the training does affected the level of financial literacy level and
financial inclusion intention as the MANOVA significance is lower than 0.05. Moreover, the mean score
of financial literacy after fulfilling the MANOVA assumptions show the respondents financial literacy
level are increasing by 29.29 % from 49.95 which consider to be low financial literacy level to 79.27
become moderate financial literacy level after gained the interventions. The financial inclusion intention
also rises even though it is not as much as the literacy level. The score of financial inclusion intention
rise with 2.8% from 3.33 to 3.47. However, the other measurement on financial inclusion intention are
done using paired-sample t-test shows that the investment with IHSG return (19.9%) are attractive to
the respondents after they follow the training. The respondents who are attracted to investment with
IHSG return rises from 55% to 81% and the t-test show that the increase is statistically significant due
to community-based training. Therefore, community-based training has positive impact to both financial
literacy and financial inclusion intention

In the descriptive analysis regarding the demographic characteristics and its relation toward women’s
financial literacy level and financial inclusion intention changes using cross-tabulation analysis. The
outcome indicates financial literacy level after the community-based training are affected the most to
them whose aged 21 - 25, have not married, work as college students, income between IDR 25,000,001
– IDR 35,000,000, participate in taking financial decision with their partner, consider themselves have
bad financial literacy level, consider themselves to be a beginner in doing investment, do not want to
participate in any kind of investment, have four children, and graduated from diploma and academy.
Whereas for financial inclusion intention changes are they who aged between 51- 55, widow, have four
dependent children, graduated from Diploma, work as businesswomen, income between less than IDR
5,000,000, other family member who taking the financial decision, consider themselves to have average
financial knowledge do not want to participate in any kind of investment product and consider
themselves to have average experience in doing investment.

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 Yunita Buana Putri and Yunieta Anny Nainggolan, Dr. / Journal of Business and Management

In this study also use OLS regression to identify the demographic characteristics which are significant
to the changes on financial literacy, changes on financial inclusion intention, financial literacy score and
financial inclusion intention after the training. The results show the significant impact of education
toward financial literacy and financial inclusion score, income to financial inclusion intention changes,
financial knowledge self-assessment to financial literacy changes and financial inclusion score after the
training.

As the research involve the community-based program where it is win – win program for both the
community and the author or institution who conducted the training (Diab and Flack, 2013). In this
research, the community is middle-up income women incorporated in arisan which gained the training
whereas the author gets the benefit are well documented in the literature and the knowledge and skills
gained from the experience conducting the training. Moreover, the research gives alternatives for OJK
to increase women financial literacy and financial inclusion by training women through the community.
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