Socioeconomic Determinants of Digital Financial Inclusion in Indonesia

Abstract

This study examines the socioeconomic and digital connectivity determinants of digital financial inclusion in Indonesia. Using individual-level data from the Global Findex 2025, digital financial inclusion is defined as ownership of a digitally enabled financial account. This measure captures whether an individual has a mobile money account or a financial institution account used to make digital payments through a card or mobile phone. The study applies weighted logistic regression and reports marginal effects to estimate how gender, age, education, income, employment status, urban-rural residence, internet use, mobile phone ownership, and smartphone use are associated with digital financial inclusion. The results found that Education (secondary: 9.9pp; tertiary: 18.0pp), income (highest quintile: 20.6pp), and employment (11.6pp) significantly boost digital inclusion. Critically, internet use predominantly benefits women (18.6pp) while smartphone and mobile ownership benefit men (22.0pp and 23.6pp respectively), revealing gendered technology pathways. Urban residence becomes insignificant after controlling for these factors, indicating that infrastructure alone is insufficient. These findings suggest that digital financial inclusion in Indonesia is shaped not only by access to digital infrastructure, but also by socioeconomic resources, labor market participation, digital connectivity, and gendered patterns of technology use.