Branchless banking introduced for poor households in Indonesia

Thursday, October 9, 2014

Bank Indonesia (BI) officially launched on Wednesday an electronic payment system to support the transfer of government direct cash assistance to poor families in several provinces in the country.

The cash transfer program is expected to initially involve 1,860 low-income households in Jakarta, West Java, East Java and Nusa Tenggara.

State-run lenders Bank Mandiri and Bank Rakyat Indonesia (BRI) will be involved in the infrastructure of the new electronic banking mechanism, which was jointly designed by BI, the Finance Ministry, the Social Affairs Ministry, the National Team for Accelerating Poverty Reduction (TNP2K) and the National Procurement Agency (LKPP).

Source: The Jakarta Post (link opens in a new window)

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alternative finance, Base of the Pyramid, financial inclusion, financial services