1.

Introduction
The young generation today has become the focus of attention of the
government of Indonesia to improve their financial literacy and inclusion. FSA
explained that the reason regulators financial education to young people is to
establish financial habits from an early age [1]. Currently, the level of ownership of a
bank account of youth in Indonesia only reached 35.2%, far behind other ASEAN
countries such as Malaysia amounted to 76.2%, Thailand at 70.6%, and Singapore
amounted to 92.9% [2]. Therefore, microfinance is now increasingly focused on
promoting a culture of saving, especially on the youth. This attitude is not fond of
saving can adversely impact the level of prosperity [3]. Individuals must have the
knowledge and skills to manage financial resources effectively for their personal well-
being [4].
Much of the research conducted on students or other young people that the
results show that knowledge of financial literacy is still low [4]. This is supported by
other studies that show that of all aspects of financial literacy, financial literacy
indicates that low among young people through education in school despite already
given materials related lectures on aspects of the financial literacy [5]. This indicates
that financial literacy and financial inclusion is very important for young people and
should be a serious concern for regulators to expand cooperation and cooperating
with many parties to improve the financial literacy of society one is social capital.
Social capital is about solidarity, confidence, and facilitate the running of a
business, which is a factor that comes from social relations involving family, friends,
coworkers, and others [6]. Reference [7] got the findings that social capital mediates
the relationship between financial literacy and financial inclusion and financial literacy
a direct effect on financial inclusion is lower than the indirect effect.
Given the role of social capital and the importance of financial literacy and
financial inclusion to young people, the researchers intend to examine the role of
social capital as a mediator of financial literacy and financial inclusion to young people
in Indonesia. Several studies have attempted to explain the role of social capital as a
mediator in the social and economic aspects, but these studies do not make young
people in Indonesia as a case study.
2. Basic Theory / Design / Methodology
2.1. Basic theory
2.1.1. Financial Literacy
Financial Literacy can be associated by consumers who have the responsibility
to inform himself of the products he purchased and understand the contract he
signed, it includes knowledge (knowledge), skills (skills) and attitude (attitude) [8].
Reference [9] tried to define financial literacy as the knowledge of the concepts of
an economic and financial base, as well as the ability to use knowledge (knowledge)
and skills (skills) Other financial manage financial resources effectively for the
financial well-being.
Financial Literacy as a combination of awareness, skills, attitude, and behavior
needed to make sound financial decisions and ultimately achieve financial well-being
of individuals [10]. The specific objectives of financial literacy can range from
consciousness (awareness), confidence (confidence), knowledge (knowledge), and
comprehension (understanding) of consumers and investors in financial problems to
make financial decisions [11]. The dimensions of the adopted financial literacy of
 reference [7] are the behavior (behavior), attitude (attitude), skills (skills) and
knowledge (knowledge).
2.1.2. Financial Inclusion
Financial Inclusion is a term that refers to a state where all working-age adults
have effective access to financial services that can be provided by formal financial
institutions in the form of loans, savings (including demand deposits), payments, and
insurance [12]. References [13] defines financial inclusion is about providing access
to financial institutions that adequate safe, convenient, and affordable financial
services for vulnerable groups who are less fortunate and others including low-
income communities, rural people and undocumented, who have been underserved
or excluded from the formal financial sector.
Financial inclusion is the process of promoting access to affordable, timely and
appropriate for a wide range of financial products and services are set up and expand
its consumer by all segments of society through the application of existing
approaches and innovative customized including financial awareness and education
with a view to promoting financial wellbeing and inclusion economic and social [14].
Adequate here can be interpreted as being eligible or can be used. The dimensions
of financial inclusion adapted from reference [7] is welfare, access, quality, and
usage.
2.1.3. Social Capital
Social capital is the sacrifice of the individual (time, energy, and consumption)
are made in an effort to enhance cooperation with others [15]. Reference [6] also
explains that social capital is about solidarity, confidence, and facilitate the running
of a business, which is a factor that comes from social relations involving family,
friends, coworkers, and others. The dimension of social capital adapted from
reference [7] is a collective action, bonding, bridging, and trust.
2.2. Design

Financial Literacy Financial Inclusion

Behavior Welfare
Skill Quality
Attitude Usage
Knowledge Access

Social Capital
Collective Action
Bonding
Bridging
Trust

H1 : Financial Literacy has a significant positive effect on social capital

H2 : Social capital has a significant positive effect on financial inclusion
H3 : Effect of financial literacy on financial inclusion with social capital is less then
effect of financial literacy on financial inclusion without social capital
 2.3. Methodology
2.3.1. Sample and population
This study population refers to the number of all members of the ISP community
both as Ambassador and as a member that is 320 members. Determining the
minimum sample size is calculated using the formula Slovin. Based on the
calculation formula Slovin with the level of 5% leeway gained minimal sample
size in this study is 180 respondents.
2.3.2. Source of Data
In this study, the primary data the researchers used a questionnaire enclosed
with the measurement Likert scale is that each instrument with five possible
answers that should be selected by the respondents, points (1) strongly disagree,
(2) do not agree, (3) neutral, (4) agree and (5) strongly disagree. This
questionnaire was adapted from previous studies with the question in these
research variables in tune with the research object. While secondary data
sources of this study are derived from books, journals, websites, online news,
previous studies, as well as other relevant sources.
2.3.3. Validity and reliability
Referring to the reference [16] where the decision-making validity test positive
if the count r and r table the item in question is valid. R table 0,361 known value
with a significance level of 5%. after testing the entire value of r count unknown
item in question valid unless the item in question "my expenses in accordance
with the budget that I made" and therefore the item is deleted in the list of the
questionnaire. According Sarwono (2008: 189) criteria for a reliable instrument
if the Alpha value of positive and> 0.6. After testing all variables known to have
a positive and Alpha values> 0.6.
3. Result
3.1. Sample characteristic
Respondents in this study were members of Investor Saham Pemula Community
throughout Indonesia. In this study, a questionnaire completed by 180 respondents
spread from various cities in Indonesia. Based on 180 respondents, obtained the
classification of respondents by region, gender, age, income, education, and jobs. The
classification is done to illustrate the characteristics of the respondent in more detail,
making it easier to analyze the data.
No characteristic element frequency Percentage
Region Java 103 57%
1
Sumatera 55 31%
Kalimantan 11 6%
Sulawesi and Bali 11 6%
Gender Men 120 67%
2
Women 60 33%
Age 15-19 years old 45 25%
3
20-24 years old 116 64%
25-29 years old 18 10%
30-34 years old 1 1%
>34 years old 0 0%
Income <Rp.1.000.000 81 45%
4
Rp.1.000.000 59 33%
Rp.2.500.000
Rp.2.500.000- 26 14%
Rp.4.000.000
 Rp.4.000.000- 11 6%
Rp.5.500.000
Rp.5.500.000- 2 1%
Rp.7.000.000
>Rp.7.000.000 3 2%
Education SD 0 0%
5
SMP 3 2%
SMA 50 28%
D3 20 11%
S1 102 57%
S2 4 2%
S3 1 1%
Jobs Students 143 79%
6
Employee 22 12%
Businessman 15 8%
PNS/TNI/POLRI 0 0%

3.2. Descriptive analysis

In the descriptive analysis needs to be done categorization distance calculation for
the value of the percentage of respondents. The number of respondents in this study
were 180 respondents with a percentage score responses in Table 2 below:
Variable Dimension Percentage
Behavior 78.3%
Skill 80.2%
Literasi Keuangan
Attitude 80.4%
Knowledge 83.1%
Collection Action 78.5%

Modal Sosial Bonding 80.3%

Bridging 82.9%
Trust 81.9%
Welfare 82.6%
Quality 77.6%
Inklusi Keuangan
Usage 77.1%
Access 83.1%

3.3. Pearson Correlation analysis

Correlations
Financial_Literacy Social_Capital Financial_Inclusion
Pearson
1 ,645** ,661**
Correlation
Financial_Literacy
Sig. (2-tailed) ,000 ,000
N 180 180 180
Pearson
,645** 1 ,754**
Correlation
Social_Capital
Sig. (2-tailed) ,000 ,000
N 180 180 180
Pearson
,661** ,754** 1
Correlation
Financial_Inclusion
Sig. (2-tailed) ,000 ,000
N 180 180 180
sumber : data diolah
Based on Table 3 above can be summarized as follows:
 1) The value of r correlation between the variables of financial literacy and social
capital of 0,645 with sig> 0.05, meaning that both variables have a positive correlation
with the level of relations, including in the strong category.
2) The value of r correlation between the variables of financial literacy and financial
inclusion is at 0.661 with sig> 0.05, meaning that means the two variables have a
positive correlation with the degree of relationship included in the strong category.
This means that the higher one's own financial literacy will increase their participation
in social capital and increase the level of financial inclusion.
3) The value of r correlation between the variables of social capital and financial
inclusion is at 0.754 with sig> 0.05, meaning that means the two variables have a
positive correlation with the degree of relationship included in the strong category.
So, if someone is active in social capital then it can enhance financial inclusion of the
person.
By correlation, this research are eligible to measure the mediators of these
variables refer to reference [17] that for the independent variable is assumed to
cause mediator, the two variables must be correlated
3.4. Regression analysis
In this analysis will measure the mediating effect of social capital on the relationship
between financial literacy and financial inclusion. The results of the calculation of the
mediating effect are illustrated in Table 4 below:
Social Capital Financial Inclusion
Predictor Model 1 Model 2 Model 3
SE coeff p SE coeff P SE coeff p
Constant 2.804 17.230 0.000 2.375 12.606 0.000 2.151 4.257 0.0494
Financial 0.766 0.8616 0.000 0.649 0.7619 0.000 0.698 0.3444 0.000
Literacy
Social Capital 0.522 0.4846 0.000
Based on Table 4 above it can be concluded with 95% confidence level the
relationship between variables is as follows:
1) The coefficient value of financial literacy in the social capital of 0.8616 and p-value
<0.5, this means that there is a significant effect between financial literacy and social
capital.
2) The coefficient value of social capital in the financial inclusion of 0.4846, and p-
value of <0.05, this means that there is a significant effect between social capital and
financial inclusion.
3) The coefficient value of financial literacy on financial inclusion in model 2 of 0.7619
and p-value of <0.05 while the model 3 at 0.3444 and p-value of <0.05, this means
that the coefficient value of financial literacy on financial inclusion in the model 3
lower than with model 2 and there is a significant effect between financial literacy
and financial inclusion both in model 2 or model 3.
Based on the above results, it can be concluded that the research model has
qualified for the achievement of the first mediation because there is a significant
effect between the independent variables and mediating variables, then the second
one there is a significant effect between the mediating variables and the dependent
variable. The next stage of the analysis was to find out the indirect effect of financial
literacy in financial inclusion through social capital by using Sobel Z test. The results
of calculation of indirect effects on the financial literacy of financial inclusion through
social capital can be seen in Table 5 below:
 Normal theory tests for indirect effect
Effect Se Z p
,4175 ,0585 7,1426 ,0000
According to the table 5 above can be seen the indirect effect of financial
literacy in financial inclusion through social capital is equal to 0.4175, higher than the
direct effect of financial literacy on financial inclusion (0.4175> 0.3444) so the
mediation function occurs in social capital variables. Mediation occurs if the direct
influence of the independent variable on the dependent is lower than the indirect
influence of the independent variable on the dependent variable through mediating
variables [17]. These results do not fully support the research of Bongomin et.al
(2016) that social capital fully mediates the relationship (full mediation) between
financial literacy and financial inclusion because if the coefficient of direct influence
declined but remained significant, it is claimed to occur partial mediation [18].
The results of Sobel Z test in Table 5 at 7.1426 and p-value of <0.05. These
results demonstrate the indirect effects of financial literacy in financial inclusion
through social capital significantly since the Z value is greater than the critical point
at the 5% significance value by 1.96 (7.1426> 1.96) and a p-value of <0.05. These
results confirm that social capital partially mediates the relationship between
financial literacy and financial inclusion to young people in Indonesia.
Thus the results of the hypothesis can be illustrated in Figure 7 below:

Financial Literacy Financial Inclusion

Behavior Welfare
Skill 0.7619 Quality
(0.3444)
Attitude Usage
Knowledge Access

0.8616 0.4846

Social Capital
Collective Action
Bonding
Bridging
Trust

4. Discussion
Based on Table 3 above can prove the study of reference [7] that there is a significant
relationship between financial literacy and financial inclusion, between financial literacy
and social capital, and social capital and financial inclusion. The findings in Table 4
hereinafter was known about the effect of financial literacy in social capital showed a
significant result with a coefficient of 0.8616 and p-value of <0.05. This means that H1 is
accepted because there is a significant effect on financial literacy and social capital.
Forming factors is the behavior of financial literacy, skill, knowledge, and attitude.
Seen on a descriptive analysis of the four dimensions above show good results, which
means the awareness of respondents in financial services a good attitude, ability,
knowledge, and attitude is good enough and it also can make the cause a person to
participate in activities or associations related to financial services, Associations or social
 capital itself has four dimensions, namely collection action, bonding, bridging, and trust
with all dimensions fit in either category. Someone who has a good financial literacy tends
to be active at the association so that the level of social capital is also good. This is
evidenced by the significant effect on the financial literacy of social capital with a positive
coefficient.
Then the results of the effect of social capital on financial inclusion also showed a
significant result with a coefficient of 0.4846 and p-value of <0.05. This means that H2 is
acceptable because there is a significant effect between social capital and financial
inclusion. The dimensions of financial inclusion itself are the access, usage, quality, and
welfare. Where these four dimensions fit in either category. Activities in social capital
research object itself are one of them sharing or sharing of knowledge and experience in
the capital markets. So if he is actively involved in the organization, sharing of ideas,
mutual trust, and responsible for the use in the financial services will get better, can select
the appropriate financial services that ultimately improve their welfare as it gets advice
from the experience of other members.
Another finding is the coefficient value of financial literacy on financial inclusion in
model 2 of 0.7619 and p-value of <0.05 while the model 3 at 0.3444 and p-value of <0.05,
this means the H3 is accepted because the coefficient value of financial literacy on
financial inclusion at the model 3 lower compared to model 2 and there is a significant
effect between financial literacy and financial inclusion both in model 2 and model 3.
According to the table above 4:16 can be seen that the indirect effect through social
capital amounted to 0.4175. This indicates that the indirect effects of financial literacy in
financial inclusion through social capital is greater than the direct effect of financial
literacy on financial inclusion (0.4175> 0.3444) so the mediation function occurs in social
capital variables. Mediation occurs if the direct influence of the independent variable on
the dependent is lower than the indirect influence of the independent variable on the
dependent variable through mediating variables [17]. These results do not fully support
the research of reference [7] that social capital fully mediates the relationship (full
mediation) between financial literacy and financial inclusion, because if the coefficient of
direct influence declined but remained significant, it is claimed to occur partial mediation
(James and Brett, in reference [ 18]).
The results of Sobel Z test in Table 5 shows the Z-value of 7.1426 and p-value of 0.000,
these results suggest an indirect effect on the financial literacy through financial inclusion
social capital significantly since the Z value is greater than the critical point with significant
value 5% by 1.96 (7.1426> 1.96) and a p-value of <0.05. These results confirm that social
capital partially mediates the relationship between financial literacy and financial
inclusion to young people in Indonesia. The implication of this is referring to the reference
[7] that the literacy program finances only slightly less likely to enhance financial inclusion
in society, in the future be required programs of financial education through social
structures such as can be spread through non-formal in society, religious organizations,
universities, and the private sector.
5. Conclusion
Based on the analysis conducted, researchers found some conclusions, namely:
1) Financial Literacy has a significant effect on social capital
2) Social capital has a significant effect on financial inclusion
 3) Effect on financial inclusion of financial literacy was investigated with social capital is
lower when compared with the effects of financial literacy on financial inclusion without
social capital.
Financial literacy programs alone may not significant promote financial inclusion among
youth in Indonesia. in the future, financial literacy programs need implement through
social structures. Researchers suggested that the regulator can take advantage of social
capital as a community to increase financial literacy and financial inclusion in society.
Regulators are expected to make a program in cooperation with the communities that
are proven to have a significant impact and be sustainable so that the benefits received
by the community will be more pronounced.
Communities can become the driving agent to increase financial literacy and financial
inclusion in society. Especially for the ISP community, needs to be observed that the social
capital variables, dimensions collection action got a low score when compared to other
dimensions. Therefore, the ISP community needs to innovate to improve the collective
action of its members.
This study is limited to one community under investigation, therefore further research
need to be extended to other community. Then this study is limited that it was cross-
sectional. Furthermore, a longitudinal study may be useful in future to investigate the
mediating impact of social capital spanning over a long period.

6. References
7.

[1] OJK. (Maret 2015a). OJK Ciptakan Financial Habit Agar Pelajar Melek Keuangan. Edukasi
Konsumen. [online]. pp. 8-9. Tersedia : http://sikapiuangmu.ojk.go.id/FrontEnd/CMS/Download/15 [15
September 2016].
[2] Global Financial Inclusion Database. (2015). The Little Data Book on Financial Inclusion. Wolrd Bank
Group.
[3] Jamison, Julian C et.al. (2014). Financial Education and Acccess to Savings Accounts : Complements
or Susbtitutes? Evidence from Ugandan Youth Club. NBER Working Paper Series 20135. National Bureau of
Economic Research.
[4] Margaretha, Farah dan Pambudhi, Reza. (2015). Tingkat Literasi Keuangan pada Mahasiswa s-1
Fakultas Ekonomi. Jurnal Manajemen Keuangan.17(1). 76-85.
[5] Mendari, Anastasia Sri dan Kewal, Suramaya. (2013). Tingkat Literasi Keuangan di Kalamangan
Mahasiswa STIE Musi. Jurnal Economia. 9(2). 130-140.
[6] Felicio, J Augusto et.al. (2014). Human Capital, Social Capital, and Organizational Performance.
Management Decision. 2(52). 350-364.
[7] Bongomin et al. (2016). Social Capital : Mediator of Financial Literacy and Financial Inclusion in Rural
Uganda. Review of International Business and Strategy. 26(2). 291-312.
[8] Cohen, Monique dan Nelson, Candace. (2011). Financial Literacy : A Step for Clients Towards
Financial Inclusion. Valladolid : Global Microcredit Summit 2011
[9] Hung, et.al. (2009). Defining and Measuring Financial Literacy. RAND Labor and Population Working
Paper Series. WR-708.
[10] OECD INFE. (2011). Measuring Financial Literacy : Core Questionnaire in Measuring Financial
Literacy : Questionnaire and Guidance Notes for Conducting an Internationally Comparable Survey of Financial
Literacy. Paris : OECD
[11] OECD INFE. (2012). High-Level Principles on National Strategies for Financial Education. Paris :
OECD
[12] CGAP/GPFI. (2010). Global Standard-Setting Bodies and Financial Inclusion for the Poor : Toward
Proportionate Standards and Guidance. Global Partnership for Financial Inclusion
[13] FATF. (2011). FATF Guidance : Anti-Money Laundering and Terrorist Financing Measures and
Financial Measures and Financial Inclusion. Financial Action Task Forces
[14] Atkinson, A. dan Messy, F. (2013), Promoting Financial Inclusion through Financial Education:
OECD/INFE Evidence,Policies and Practice, OECD Working Papers on Finance, Insurance and Private
Pensions, No. 34, OECD Publishing. http://dx.doi.org/10.1787/5k3xz6m88smp-en
[15] Oxoby, Robert. (2009). Understanding Social Inclusion, Social Cohesion, and Social Capital.
International Journal of Social Economics. 12(36). 1133-1152
[16] Sarwono, Jonathan. (2008). Riset Bisnis untuk Pengambilan Keputusan. Yogyakarta : Andi
[17] Baron, Reuben dan Kenny, David A. (1986). The Moderator-Mediator Variable Distiction in Social
Psychological Research : Conseptual, Strategic, and Statistical Considerations. Journal of Personality and Social
Psychology. 6(51). 1173-1182
[18] Suhardi, Deddy A. (2009). Efektivitas Variabel Mediator Berdasarkan Kontribusinya dalam Model
Mediasi Sederhana. Jurnal Matematika, Sains, dan Teknologi. 1(9). 6-17