Articles

Moderation of Life Style on the Influence of Financial Literacy and Self-Control on the Saving Behavior of Millennial Employees in Denpasar City

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This study aims to analyze the influence of financial literacy and self-control on the saving behavior of millennial employees, as well as the moderating role of lifestyle in the relationship. Financial literacy, which includes an individual’s understanding of basic financial concepts and money management, is hypothesized to play an important role in increasing saving behavior. Self-control, an individual’s ability to resist consumer impulses and make wise financial decisions, is also considered a key factor influencing the tendency to save. However, excessive consumption behavior as part of the millennial lifestyle can potentially hinder savings efforts even though they have adequate financial literacy and self-control. In this study, lifestyle is modeled as a moderating variable that can weaken or strengthen the influence of financial literacy and self-control on saving behavior. Data collection was conducted through a survey of millennial employees from various job sectors. Data analysis used the moderated regression method to test the interaction between financial literacy, self-control, and lifestyle in influencing saving behavior. The results showed that financial literacy and self-control had a significant positive effect on saving behavior. However, lifestyle acts as a negative moderator, where a consumptive lifestyle weakens the relationship between financial literacy and self-control with saving behavior. This finding provides practical implications for individuals and companies, especially in raising awareness of the importance of lifestyle control and financial literacy to encourage better saving behavior among millennial employees.

Empowering Financial and Digital Literacy to Build Resilience of MSMEs: Proposed Implementation in Bandung City

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This study investigates the factors that influence financial and digital literacy among MSMEs in Bandung. Through semi-structured interviews with 5 key stakeholders, including banks, the MSMEs Agency, entrepreneurs, business incubators, and Financial Services Authority (OJK), the research revealed significant gaps in financial literacy, particularly in financial management and reporting, which hinder MSMEs’ access to credit and growth. Many entrepreneurs rely on simple calculations and struggle to create accurate financial reports. Digital literacy challenges, such as limited adoption of digital technology and uneven internet access, also hinder MSMEs participation in the digital economy. Key barriers include difficulty changing financial habits, limited mentorship, and limited budgets to support the program. The study emphasises the importance of financial education, noting that businesses with large lines of credit often lack comprehensive financial literacy. Based on these findings, targeted interventions are proposed, including comprehensive financial education program and digital skills training. The study emphasised the need for collaboration between the government and financial institutions to improve financial inclusion and literacy. The study proposes a Digital Creative Academy that aims to improve the digital marketing capabilities of MSMEs, particularly in video content creation and live streaming on e-commerce platforms. The program targets 750 micro-entrepreneurs in 30 sub-districts, addressing the need for digital skills in a growing market. This research contributes to understanding the challenges of MSMEs development in Indonesia and offers practical recommendations for policymakers and educators to strengthen MSMEs resilience in the digital age.

Development of Marketing Strategy to Improve AFX Market Penetration in Indonesia

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In this paper, we examine the marketing strategy of AFX, a pseudonym for a real forex trading platform. This alias helps us discuss the company’s strategies without disclosing its identity. Our focus is on AFX’s efforts to expand its market presence in Indonesia. Despite the rapid growth of the global fintech sector, AFX has not effectively reached the young Indonesian market due to low financial literacy levels.

This study uses both qualitative and quantitative research methods to explore the factors that affect AFX’s position in the market and its strategic marketing actions. We apply the 7P Marketing Mix and STP (Segmentation, Targeting, Positioning) frameworks to analyze AFX’s internal processes and external challenges. The goal is to propose strategies that could increase the platform’s Monthly Active Users (MAU).

 

The Effect of Green Intellectual Capital and Financial Literacy on Sustainable Financial Performance of Tofu Factory SMEs in Karawang Regency

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Sustainable financial performance is one of the main objectives of SMEs, but achieving optimal sustainable financial performance needs to be supported by the ability of resources owned by SMEs, both from the level of green intellectual capital and financial literacy. Hence, this research aims to determine the effect of green intellectual capital and financial literacy on sustainable financial performance. This research uses a quantitative descriptive method. Data is collected in the form of primary data through the distribution of questionnaires. The study population consisted of all Tofu Factory SMEs in Karawang Regency, as many as 105 SMEs, using a Purposive Sampling Strategy Criteria; thus, the final sample used was 90 respondents. Data processing techniques were carried out using PLS with SmartPLS 3.0 software through three data testing stages: the outer model, the inner model, and the hypothesis. The results found a positive and significant influence of green intellectual capital on the sustainable financial performance of Tofu Factory SMEs. Sustainable financial performance is also positively and significantly influenced by the financial literacy of Tofu Factory SMEs. Suggestions for further researchers are expected to add variables of green product innovation, creativity capital, and green financing, because those who examine these variables are still very limited; thus, they can create a more accurate model based on the actual conditions in SMEs.

Empowering Women through Financial Literacy and Financial Inclusion: Lesson Learned From Pandemic Impact

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This study examines the impact of financial literacy and financial inclusion on women’s empowerment, since it is crucial for gender equality and sustainable development. This research method involves collecting primary data through questionnaires distributed to a sample of housewives who live in West Java. Secondary data is also used to support the analysis. Variables analyzed include women’s financial literacy, planning, decision-making, crisis, financial inclusion, and women empowerment. Descriptive statistics and regression analysis were used to analyze the data. Findings will shed light on the role of financial literacy and inclusion in women’s empowerment, aiding policy efforts to enhance access to financial services and increase women’s economic participation.

The Influence of Financial Literacy, Risk Tolerance, and Demographic Factors on Investment Decision among Generation Z and Millennial in Greater Jakarta and Greater Bandung

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Financial services and products are getting more complex and difficult to comprehend for many consumers. Consumers with limited financial literacy may struggle to make wise decisions about their financial (investment) decisions. Financial literacy capital market in Indonesia still in lowest level. In addition, low financial literacy will increase the number of illegal investments. Throughout 2022, the Indonesian police have handled 28 illegal investment cases with a total loss of 31.4 trillion to the community. The victim also came from varied backgrounds, men and women, young and old, from those who did not go to school until undergraduates, from low-income to high. The purpose of this study is to determine the relationship between financial literacy, risk tolerance, and demographic factors toward investment decisions among Generation Z and millennials in Greater Jakarta and Greater Bandung. Variable financial literacy used in this study includes financial knowledge, behavior, and attitude. An online questionnaire was conducted and there were 216 respondents who participated in this research. A quantitative approach was used to analyze the data collected using multiple linear regression through SPSS. The study found that financial knowledge, financial behavior, financial attitude, age, and occupation have a significant effect on investment decisions. Meanwhile, risk tolerance, gender, and income do not have a significant effect on investment decision.

The Effect of Financial Technology, Financial Literacy, and Financial Behavior on Investment Decisions in the Capital Market in Investors during the Post-Covid-19 Pandemic

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This study aims to examine the effect of financial technology, financial literacy, and financial behavior on an investor’s investment decisions. The sample in this study is someone who has invested in the capital market at least once and lives in the city of Jakarta. The sample was taken using purposive sampling and obtained from 180 respondents. Data analysis uses SmartPLS3 through an outer, inner model, and hypothesis testing. The external and internal models show the results of all valid research instruments, and reliable and appropriate models are used to explain the dependent variable. The results show that financial technology, financial literacy, and financial behavior positively and significantly impact investment decisions.

A Study on Behavioural Bias & Investment Decision from Perspective of Indonesia’s Cryptocurrency Investors

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Cryptocurrency, an innovative asset class that is widely adopted by investors around the world. Indonesia is no exception to this, increasing the investor adoption up to 12 million investors in 2022. This number is very significant compared to Indonesia stock market investors that is only around 7 million investors. Various literatures have covered cryptocurrency in terms of pricing strategy and technicalities, so this paper extends the understanding of cryptocurrency dynamics from a behavioral finance perspective that is still less developed in Indonesia. This paper aims to explore the relationship between financial literacy, behavioral bias as well as its implication on the investment decision making process and investment performance from the perspective of investors based on Indonesia’s cryptocurrency investors at online communities. This paper used Structural Equation Modeling (SEM) to predict the relation between variables. Our results show that financial literacy has an impact on each behavioral bias. While the behavioral biases that investigate in this study have different result in term of impact on decision-making process and the investment performance. Overconfidence, herding and anchoring are the biases that significantly influence invertor’s decision making in scope of cryptocurrency market in Indonesia. This study outcome may help investors understand and increase the awareness of investor’s investment behavior and decision-making process, and parallel to that the regulators and other stakeholders may use the insight to improve investor’s protection.

E-Commerce and Environmental Uncertainty Adoption in Strengthening Financial Literature on the Performance of MSMEs in the Culinary Sector in Solo

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This study has purpose (1) to analyse the effect of financial literacy on the performance of MSMEs. (2) to analyse the effect of financial literacy on the performance of MSMEs moderated by e-commerce adoption. (3) to analyse the effect of financial literacy on the performance of MSMEs moderated by environmental uncertainty. The quantitative descriptive approach was used in this study, which included 175 SMEs in the culinary sector in Solo. Data sources were acquired from primary sources utilizing a closed questionnaire technique, and the measurement scale was a 5-point Likert scale. The Pearson Correlation and Cronbach Alpha tests are used to assess the data’s quality. The data analysis technique used regression analysis with the Absolute Difference test approach, after first performing the traditional assumption test. The results of the study show (1) Financial literacy has a significant effect on the performance of MSMEs in the culinary sector in Solo City. (2) E-commerce can moderate the influence of financial literacy on the performance of MSMEs in the culinary sector in Solo City. (3) Environmental uncertainty cannot moderate the influence of financial literacy on the performance of MSMEs in the culinary sector in Solo City.