Major lenders gear up for digital financial services in Indonesia

Monday, May 5, 2014

Following Bank Indonesia’s (BI) decision to revise its electronic money regulation, major lenders are now preparing to venture into the new frontier of branchless banking, with an aim to reach those underserved by banks.

Bank Rakyat Indonesia (BRI), known for its extensive network coverage, plans to employ around 5,000 agents this year alone to implement e-services, officially called “Digital Financial Services” (LKD).

According to BRI president director Sofyan Basyir, the state-owned lender had submitted its LKD plan and time frame to BI and expected to get the central bank’s approval soon.

Djarot Kusumayakti, BRI director for micro-, small- and medium-enterprise businesses, said that the 5,000 agents would be its own debtors. According to its latest financial report, BRI had 6.7 million micro-loan customers as of March.

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