Bank Indonesia has a plan to increase financial inclusion by targeting the whole country, especially the middle and lower income classes. All communities are supposed to have convenient access to banking products and services. Banks in Indonesia are governed by rules that are significantly different from those that apply to non-banking businesses. As a result, they have the ability to influence the effectiveness of supervisory procedures. The major goal of this study is to determine the impact of financial inclusion on commercial banks profitability in Indonesia, as well as to determine which variables have the most impact on commercial bank profitability. The study was built on the foundations of agency theory, financial inclusion theory, and financial profitability theory. The sample for the research includes commercial banks listed on the Indonesia Stock Exchange; in the end there are 26 commercial banks included. The study included the years 2015 to 2019. The data was analyzed using multiple regression analysis. Hypotheses were evaluated at a 5% level of significance. Financial inclusion metrics from banks, such as the number of branches, ATMs, loans, deposits, credit cards, and internet banking, were utilized as predictors in this study. Changes in branches, ATMs, loans, deposits, credit cards, and m-banking were found to account for the majority of the variation in bank profitability, particularly ROA and ROE. The findings show that the independent variables (financial inclusion), which comprise branches, ATMs, loans, deposits, credit cards, and m-banking/e-banking, have a significant impact on financial profitability when used collectively.

Bank Indonesia has a plan to increase financial inclusion by targeting the whole country, especially the middle and lower income classes. All communities are supposed to have convenient access to banking products and services. Banks in Indonesia are governed by rules that are significantly different from those that apply to non-banking businesses. As a result, they have the ability to influence the effectiveness of supervisory procedures. The major goal of this study is to determine the impact of financial inclusion on commercial banks profitability in Indonesia, as well as to determine which variables have the most impact on commercial bank profitability. The study was built on the foundations of agency theory, financial inclusion theory, and financial profitability theory. The sample for the research includes commercial banks listed on the Indonesia Stock Exchange; in the end there are 26 commercial banks included. The study included the years 2015 to 2019. The data was analyzed using multiple regression analysis. Hypotheses were evaluated at a 5% level of significance. Financial inclusion metrics from banks, such as the number of branches, ATMs, loans, deposits, credit cards, and internet banking, were utilized as predictors in this study. Changes in branches, ATMs, loans, deposits, credit cards, and m-banking were found to account for the majority of the variation in bank profitability, particularly ROA and ROE. The findings show that the independent variables (financial inclusion), which comprise branches, ATMs, loans, deposits, credit cards, and m-banking/e-banking, have a significant impact on financial profitability when used collectively.

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