WGES 2011 Geothermal Development in Indonesia 2011 (Arc Media Global)
PSRA 2015 - State of Indonesian Payments Part 2
1. HOW TO ENCOURAGE
E-MONEY IN INDONESIA
- part 2
BE LOCALLY RELEVANT.
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3. Financial inclusion is found
to be highly relevant to
support effective functions
and tasks of Bank Indonesia
in terms of monetary
aspect, payment system,
and macroprudence.
4. In terms of financial
system stability,
financial inclusion helps
reduce pressures from
liquidity risk and credit
risk in banking sector.
6. From credit aspect, new
retail markets open,
primarily micro and
small credits, endorsing
diversification of
portfolios and credit
risks.
7. Financial inclusion programs
further help increase
community’s capability with
the resulting financial
responsibilities after
implementation of financial
education and consumer
protection programs.
8. From monetary policy aspect,
with financial inclusion, policy
rate can touch the community at
all levels in any places because
policy rate is transmitted through
banks, thereby supporting to
realize effective monetary
policies and the community will
not be affected by the second
round effect of the policies.
9. Meanwhile, from payment
system aspect, smoother
payment system to the whole
areas leads to the common
use by wider community
wherever they are. In
addition, less cash society
program may be implemented
with added value for the
community and economy.
10. ENTER
INDONESIAN PAYMENTS
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12. Educating people at the
bottom of the pyramid to
learn to keep their money
from cash-based in the
house to account-based in
electronic money accounts.
How to encourage
use of e-money
13. It may help reduce
consumptive tendency and
serve as the initial point of
financial diary, managing
simple finance supported by
financial education programs.
How to reduce
consumptive tendency
14. Through BI roles in financial
inclusion, it is expected that
the capability and life quality
of people at the bottom of
the pyramid will improve.
The impact of
financial education
15. high printing cost of
approximately Rp 3 trillion/
year, small money in hand,
much time to count the
change, and difficulty in
keeping much cash
The cost of cash for
Indonesia
16. Bank Indonesia and the relevant institutions
(the Coordinating Ministry of Economic
Affairs, Ministry of Finance, DKI Jakarta
Province Government, and the Association of
Indonesian Province Governments) as well as
industry actors in payment system under the
Association of Payment System in Indonesia
(ASPI) have launched Non-Cash National
Movement (GNNT) on 14 August 2014.
Who are leading the
Indonesia’s Non-Cash
Movement?
17. The GNNT initiative aims to encourage
and expand the use of non- cash
transactions to increase economic
efficiency, security, and convenience in
transactions, strengthen transparency
and accountability, and support efforts to
prevent corruption, money laundering,
and terrorism funding.
What is the Non-Cash
National Movement
(GNNT)?
18. Efforts to realize expanded
use of non-cash transactions
are made not only for retail
transactions, but also for
high value transactions to
facilitate financial revenue
and expense transactions of
corporations and the
government.
19. 1. service expansion through telco network
2. synergy of banks and non-banks, e-
commerce services
3. public and government services in 34
ministries
4. regional government services, and
5. the services of state owned enterprises
(SOE) and regional owned enterprises (ROE)
What are the 6 Priority
Programs in the National Non
Cash Initiatives?
20. GNNT aims to increase
public awareness of the
use of non-cash
instruments to gradually
establish less cash
society (LCS), particularly
in making transactions in
their economic activities.
21. As a form of our commitment
to the expanded use of non-
cash instruments, we will
make GNNT as an annual
movement with various
activities to increase public
understanding on the use of
non-cash instruments in
making payment transactions.
22. the huge potential of
transportation sector in
Jakarta of Rp 23.4
trillion/year (US$ 1.76bn)
Potential of e-
payments in Indonesia
23. HOW CAN
OMNICHANNELS
INCREASE YOUR
PAYMENTS
REVENUE?
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Dr Moekti Soejachmoen,
Economist and Head of Mandiri
Institute, Bank Mandiri chairs this
session.
13-14 AUGUST 2015 | JAKARTA
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GROW THE REAL
BUSINESS, NOT JUST
THE BUZZ
Implement expansion that you
will be proud of by meeting
people who have already scaled
payments and achieved wide
adoption, like Dr Moekti
Soejachmoen, Head of Mandiri
Institute, Bank Mandiri, who will
be chairing the panel on Omni-
Channels to Support Digital
Banking and Discuss How You
Can Widen Adoption with
practical insights.
In just 17 years, Bank Mandiri has
earned 16 million banking
customers, with US$ 2bn in
profits. Through important
partnerships, it is set to grow to
tap the 50 million Indonesians
who will enter the middle class
before 2020.
Don’t you want this valuable
inside information?
25. Electric trains as the veins of
transportation in Jakarta can carry
400 thousand passengers per day
with an annual turnover of
Rp 1.4 trillion.
That’s a lot of
passengers!
26. The biggest potential is fuel expense in
gas stations, which, with an assumed
consumption of 1-4 liter per vehicle per
day, will reach Rp 14.6 trillion per year.
28. E-ticketing of Jakarta commuter
trains has been interconnected to
4 electronic money of 4 banks.
29. To increase the local revenue of
Jakarta, e-payment has been
implemented for redistribution by
street vendors and e-parking.
30. If you wish to ride on
TransJakarta buses, you
must also use electronic
money.
31. GNNT is also a part
of services
program for
Indonesian migrant
workers by the
Ministry of
Manpower and
BNP2TKI through
payment of
placement and
protection services
for Indonesian
migrant workers
and financial
education program
for Indonesian
migrant workers
and their families.
32. It is also encouraged that
remittance in relation to
Indonesian migrant workers
is made through electronic
money. It aims to help
reduce the relatively high
remittance cost borne by
Indonesian migrant workers.
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35. Various cooperation and
facilitation by Bank
Indonesia have been
consistently made to
encourage cash services. In
the following year, BI has
recorded synergy with 11
Ministries and 34 province
governments.
36. BI records 5 forms of BI facilities
related to non-cash services, namely:
1. mapping of available non-cash
services forms,
2. preparation of business model and
business process,
3. facilitation of non-cash services
availability with industries, and
4. implementation of non-cash
services and education
38. Paper-based includes
checks, giro biljet, and debit
notes.
Meanwhile, electronic-
based among others
includes ATM/debit cards,
electronic money, credit
cards, and mobile money.
39. Various cooperation and facilitation by Bank
Indonesia have been consistently made to
encourage cash services. In the following year, BI
has recorded synergy with 11 Ministries and 34
province governments.
BI records 5 forms of BI facilities related to non-
cash services, namely:
mapping of available non-cash services forms,
preparation of business model and business
process,
facilitation of non-cash services availability with
industries, and
implementation of non-cash services and
education.
41. 1. initial deposit
2. saved in a particular medium (either cards or
communication devices)
3. the main function as a means of payment, and
4. non-deposit making it ineligible for deposit insurance
and interest
Electronic money saved in cards is usually issued by
banks, while non-cards are usually issued by telco
companies.
What are 4 characteristics
of electronic money?
42. Therefore, electronic money can be used
for shopping and purchases.
However, there is something better than
traditional money: electronic money can
be used to pay bills, transfer between
individuals, or withdraw cash. It is similar to
a bank account.
Is electronic money
money?
43. 1. Unregistered which does not
require user data registration, and
2. Registered which requires the
electronic money holder's identity
data to be recorded with an issuer
What are 2 types of
electronic money?
44. 1. Maximum balance is Rp
5 million,
2. transfer is permitted,
and
3. cash withdrawal is
possible
What are the 3 advantages of
registered electronic money in
Indonesia?
45. Expansion of financial inclusion:
Synergy of Electronic Money and
Digital Financial Services (DFS)
47. As an embodiment of Bank Indonesia’s financial inclusion
initiative, DFS is an innovation to bring financial access
closer to the community in remote areas.
Through DFS, payment system and financial services no
longer depend on the existence of branch offices of
banks.
Such service is provided by providers in cooperation
with third parties by using mobile and web-based
technology devices and facilities.
No more dependence
on physical branches
48. Third parties in such services expansion are called
DFS in the form of legal entities or individuals.
DFS individual agents are companies with no legal
personality and individuals.
DFS agents function to provide facilities of
electronic money registration, top up, payment,
cash withdrawal, and distribution of government’s
aid to the community.
The product used in DFS is
server-based electronic money
transacted online.
49. 1. no need to come to branch offices of banks,
2. save money and time,
3. has a medium to temporarily save money in a safe
manner,
4. learn to save and be recognized by banks, and
5. serve as the first step to recognize other financial
services.
Therefore, the overall transformation process of public
culture and paradigm in financial transactions is in line
with the road map of financial inclusion and
electronification designed by Bank Indonesia.
What are the benefits of
DFS for the community?
50. 1. facilitating registration,
2. top up,
3. cash withdrawal,
4. payment of bills, and
5. distribution of government’s
aids.
What are the 5
functions of DFS?
54. Bank Indonesia has also observed Islamic boarding
schools as the target of financial inclusion
development through DFS.
In relation to this, Bank Indonesia and the Ministry of
Religious Affairs have signed a Memorandum of
Understanding on Development of Economic
Independence of Islamic Boarding Schools and
Improvement of Non-Cash Services for Financial
Transactions in the Ministry of Religious Affairs in
Surabaya.
Such memorandum signing is one of the series of
events of Sharia Economic Festival (ISEF) held from
3 to 9 November 2014 in Surabaya.
55. This Memorandum of Understanding is first
implemented in East Java because there are
approximately 6,000 Islamic boarding
schools there and it is in line with the
government’s plan to make Surabaya the
Center of National Sharia Economic
Development.
The initial movement in East Java is expected
to inspire other areas to accelerate financial
inclusion in the community.
56. The cooperation between Bank Indonesia and the
Ministry of Religious Affairs is triggered by the
huge number of muslim population in Indonesia.
Accordingly, the existence of educational
institutions becomes more widespread, and the
number of Islamic boarding school students also
increases.
With the huge potential, financial education
provided to such students will encourage
economic independence, resulting in financial
inclusion in the wider community.
57. Islamic boarding schools will act as DFS
agents interacting with banks.
The users in such DFS are the students
and the surrounding community. Islamic
boarding schools as DFS will provide
financial products and services to users.
What is the business model of the
Islamic boarding school-based
DFS?
58. Bank Indonesia is now establishing BMT Sidogiri in
Pasuruan, East Java. BMT Sidogiri’s assets in financial
year 2013 reached Rp 1 trillion and it is presently the
biggest cooperative in East Java.
59. BMT Sidogiri Cooperative acts as a DFS
agent interacting with the electronic
money issuer.
As a DFS agent, BMT Sidogiri can provide
services to pay tuition fees, deposit and
withdraw cash, and remit and receive
money.
The students and the community can also
shop in Basmallah convenience store
owned by BMT Sidogiri by using
electronic money.
60. ENTER
INDONESIAN PAYMENTS
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61. Source: Public Lecture
on the Central Bank -
Bank Indonesia’s
Policies on Financial
Inclusion through Non-
Cash National
Movement
