A New Economic Perspective: Understanding the Impact of Digital Financial Inclusion on Indonesian Households’ Consumption

This study is based on the cross-sectional per capita household consumption data sourced from the Indonesian family life survey (IFLS) in wave 5, 2014. These data are analyzed to determine how digital financial inclusion impacts household consumption in Indonesia. Our findings reveal that the increased household consumption is significantly associated with the internet usage index. We further conclude that household consumption significantly increased due to the digital finance, especially in households with fewer assets, lower financial literacy, and lower incomes.