International Journal of Economics and Financial Issues ISSN: 2146-4138 available at http: www.econjournals.com International Journal of Economics and Financial Issues, 2018, 8(5), 351-358. International Journal of Economics and Financial Issues | Vol 8 • Issue 5 • 2018 351 Financial Inclusion Profle: Determinant and Barriers Novi V. B. Kaligis 1 *, Bernhard Tewal 2 , Joubert B. Maramis 3 , Maryam Mangantar 4 1 Doctoral Program, Faculty of Economics and Business, Sam Ratulangi University, Indonesia, 2 Department of Human Recources Management, Sam Ratulangi University, Indonesia, 3 Department of Financial Management, Sam Ratulangi University, Indonesia, 4 Department of Financial Management, Sam Ratulangi University, Indonesia. *Email: novixz2011@yahoo.com ABSTRACT The policies arranged by the government of the Republic of Indonesia in the efforts to develop rural areas and border areas, such as North Sulawesi (which is in the border of Indonesia-Philippines), is interesting to observe, particularly on the aspect of fnancial inclusion in small and medium enterprise. The research aims at examining the determinant and obstacles of fnancial inclusion in North Sulawesi. The results show that Age and Gender do not signifcantly infuence fnancial inclusion, especially with the dependent variable of formal account. Meanwhile, other variables, the status of formal account and the automatic teller machine (ATM) cards, do not have signifcantly infuence. Similarly, education has also dependent variables. The difference is the determinant of the dependent variables. The number of formal account and the ATM signifcantly infuence the fnancial inclusion, but not the model of the status of the formal account. For the obstacles, there are six factors infuencing the fnancial inclusion. Those are lack of business management, bad experience with the bank, less supporting business condition, religion and family, and various documents of credit requirements. Keywords: Financial Inclusion, Determinant, Obstacles, Small and Medium Enterprise JEL Classifcations: E44, G2, G32 1. INTRODUCTION Financial Inclusion is the effort to create and activate fnancial system in accordance with the access to all levels of society. It will lead to a good economic development as well as overcoming the problem related to poverty. Financial inclusion is the concept of connecting the fnancial aspect or budgeting with the marginalized society in certain area in the effort to minimize the gap between the rich and the poor, leading to the improvement of community’s wealth and welfare. Good development of fnancial inclusion will encourage the growth of banking and non-banking institutions in the related areas. At the core, fnancial inclusion is the easiness of access to the services or formal fnancial system by all economic stakeholders. India government defnes fnancial inclusion as a process of accessing fnancial services in appropriate time and credit availability needed by marginalized society, such as those having low income (Tamilarasu, 2014). Similar defnition given by Garg and Agarwal (2014), stating that fnancial inclusion is a condition when people cannot access the banking goods and services, such as savings, credits, insurance, and education loans. In short, fnancial inclusion is the provision of fnancial services in appropriate time to marginalized people (Fadun, 2014). Financial inclusion is closely related to the access of bank for the marginal. Therefore, it is necessary to conduct an in-depth research. It is in line with the arguments provided in empirical fndings. According to Tamilarasu (2014), family with low income has less access to the bank. In fact, they need more time and money to obtain the services of the bank (opening an account or getting a loan). They fnd it diffcult to save or plan their fnance. Similarly, Fadun (2014) states that Micro fnancial institution plays signifcant role in facilitating the inclusion because they have unique position in reaching the marginalized people. The introduction of fnancial inclusion to the village will give broad impact to local and national economy, since it improve the economy and fnancial services in rapid pace. According to Shyni and Mayoothu (2014), the targeted of fnancial inclusion groups) help to get the access to the loan or credit and various services available. It was improved the income and living standards.