Banks across Indonesia have reportedly stated that their information technology systems will be ready to handle branchless banking by 2013 pending the issuance of authorizing regulation from Bank Indonesia (BI), the country’s central bank and financial regulator. The World Bank’s Global Financial Inclusion Database indicates that 20 percent of Indonesians 15 years of age and older had traditional savings accounts and 9 percent of Indonesians in the same age category reported obtaining loans from official financial institutions. Budi Gunadi Sadikin, managing director for micro and retail banking for state-owned Bank Mandiri, reportedly said, “Telecommunication operators have more than 300,000 to 400,000 spots at which phone vouchers are sold. Banks want to have access to these spots.”
The 75 Indonesian microfinance institutions reporting 2011 data to the US-based Microfinance Information Exchange report an aggregate gross loan portfolio of USD 10.1 billion and deposits collected totaling USD 73.5 million.
By Lena Phillips, Research Associate
About Bank Indonesia
Established in 1999, Bank Indonesia (BI) is the nation’s central bank. Its primary objective is to maintain currency stability by: formulating and implementing monetary policy, regulating and ensuring smooth operation of payment systems, and regulating and supervising the national banking system. As of 2012, Bank Indonesia’s governor is Mr. Darmin Nasution.
Sources and Additional Resources:
Thejakartapost.com: “Banks’ IT Systems Ready for Branchless Banking”, by Mariel Grazella, http://www.thejakartapost.com/news/2012/11/30/banks-it-systems-ready-branchless-banking.html
World Bank’s Global Financial Inclusion (Global Findex) Database, www.worldbank.org/globalfindex
MicroCapital.org article, 5 July 2012: “MICROCAPITAL BRIEF: Indonesia: Banks Introduce Rabu Microsavings Program at Indonesian Banking Expo (IBEX)”, http://www.microcapital.org/microcapital-brief-indonesia-banks-introduce-rabu-microsavings-program-at-indonesian-banking-expo-ibex/#more-19433
MicroCapital.org article, 27 January 2009: “MICROCAPITAL STORY: Bank Indonesia Welcomes the Competition of Foreign Banks Into Indonesia’s Microfinance Sector”, http://www.microcapital.org/microcapital-story-bank-indonesia-welcomes-the-competition-of-foreign-banks-into-indonesias-microfinance-sector/
Mixmarket.org: Microfinance in Indonesia- Country Profile, http://www.mixmarket.org/mfi/country/Indonesia#mix-country-table-tabs-0 MicroCapital Universe Profile: Bank Indonesia (BI), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+Indonesia+%28BI%29
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