THE INFLUENCE OF FINANCIAL INCLUSION AND FINANCIAL TECHNOLOGY ON MSME PERFORMANCE IN DKI JAKARTA

Abstract

This study aims to analyze the effect of financial inclusion and financial technology on the performance of Micro, Small and Medium Enterprises (MSMEs) in DKI Jakarta Province. In the face of digitalization and macroeconomic pressures, the ability of MSMEs to access formal financial services and financial technology is an important factor in maintaining and improving business performance. This research uses a quantitative approach with a survey method and Structural Equation Modeling - Partial Least Square (SEM-PLS) data analysis technique through SmartPLS 4 software. The number of respondents was 100 MSME actors selected using purposive sampling technique based on certain criteria. The results showed that financial inclusion has a positive and significant effect on MSME performance, financial technology also has a positive and significant effect on MSME performance, and financial inclusion has an indirect effect on MSME performance through financial technology. This study suggests that expanding access to finance and optimal utilization of digital technology can be an effective strategy in improving the competitiveness of MSMEs.