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Vol 40 No 3 (2025): September

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Jul 4, 2023
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Feb 3, 2025
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Sep 29, 2025
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Digitalization and Access to Household Credit in Indonesia: Pre- and-Post-COVID-19 Pandemic (2019 and 2021)

https://doi.org/10.22146/jieb.v40i3.8766
Cita Puspita Sari
Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta, 55281, Indonesia
Eny Sulistyaningrum
eny@ugm.ac.id
Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta, 55281, Indonesia

Corresponding Author(s) : Eny Sulistyaningrum

eny@ugm.ac.id

Journal of Indonesian Economy and Business, Vol 40 No 3 (2025): September

Abstract

Introduction/Main Objective: This study examines the effect of digitalization on access to household credit during the National Economic Recovery (PEN) program in Indonesia. Background Problems: Financial inclusion plays an important role in improving welfare and quality of life, accelerating economic growth, and alleviating poverty. Digitalization can affect financial inclusion through the transmission of mobile financial services, such as internet banking. Novelty: This study contributes to the literature on financial inclusion from the perspective of household credit. Research Method: This study uses the binomial log it model and data from the national socio-economic survey (SUSENAS) and statistics on village potential (PODES) from 2019 (before the pandemic) and 2021 (one year after the pandemic). Findings/Results: The results show that the average marginal effect of a household’s internet use was 1 percent higher than non-use before COVID-19. Meanwhile, after COVID-19, the marginal effect was 1.6 percent greater for households accessing credit through internet use than for those not using the internet. Furthermore, the probability of credit access is 4.6 percent higher for cell phone users than for non-users pre-COVID-19; meanwhile, post-COVID-19, the probability was 4.1 percent smaller than pre-COVID-19.The majority of households with access to credit are headed by males living in rural areas; they are married and working; they graduated from junior high school or above; and they are 30-59 years old. Conclusion: This study, by comparing 2019 to 2021, concludes that, as a result of the COVID-19 pandemic, digitalization accelerated access to household credit.

Keywords

Digitalization credit access financial inclusion logic model COVID-19 Pandemic
Puspita Sari, C., & Sulistyaningrum, E. (2025). Digitalization and Access to Household Credit in Indonesia: Pre- and-Post-COVID-19 Pandemic (2019 and 2021) . Journal of Indonesian Economy and Business, 40(3), 363 -. https://doi.org/10.22146/jieb.v40i3.8766
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Author Biographies

Cita Puspita Sari, Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta, 55281, Indonesia

Cita Puspita Sari is a statistician and also researcher at BPS Pekalongan Regency. Her research interests lie in the areas of economics and social fields. She earned her Bachelor’s degree at the Sekolah Tinggi Ilmu Statistik (STIS), Jakarta in 2010. She did her Master’s degree in Economics Development at Universitas Gadjah Mada (UGM), Yogyakarta in 2022.

Eny Sulistyaningrum, Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta, 55281, Indonesia

Eny Sulistyaningrum is a lecturer and researcher at the Department of Economics, Faculty of Economics and Business (FEB), Universitas Gadjah Mada. She currently serves as Deputy Head of Department since 2015. Eny was appointed as Head of Quality Assurance Office at FEB UGM in 2014. She is also appointed as a reviewer in national and international journal. Her main research interests are in human resources economics. Eny obtained her bachelor degree from UGM in 2000, her master degree from Georgia State University USA in 2003, and her PhD from Lancaster University UK in 2013. She also participated in several Training of Trainer and Training of Writer series on Economics Education which were funded by the US National Economic Education Council in several countries (Mexico, South Africa, Romania, and USA). She also attended a summer course in Microeconometrics at Cambridge University UK in 2011.

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