BI and MEMR Expand Cooperation to Increase Financial Access - Bank Sentral Republik Indonesia
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November 20, 2017

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Bank Indonesia and Ministry of Energy and Mineral Resources (MEMR) of RI agree to expand cooperation among others to increase financial access. The commitment is specified in the Memorandum of Understanding (MoU) on Cooperation and Coordination for Implementation of Duties of Bank Indonesia and Ministry of Energy and Mineral Resources (MEMR) of RI signed by the Governor of Bank Indonesia, Agus D.W. Martowardojo and Minister of EMR, Ignasius Jonan, today (13/4), in Jakarta. The Memorandum of Understanding is an expansion of the previously agreed Memorandum of Understanding in 2015, No.17/1/GBI/DSta/NK on Cooperation on Exchange, Acquisition, and Preparation of Data and/or Information.

Amidst the intensifying challenges to maintain stability and increase economic efficiency, closer synergy between Bank Indonesia as an authority in monetary, macroprudence, and payment system-rupiah management with the MEMR as the administrator of one of the most strategic sectors in the national economy, we consider it necessary to support optimization of the implementation of the duties of the two institutions, as said by the Governor of Bank Indonesia in his speech in the signing event.

The expansion of cooperation between BI and MEMR among others includes the increase in financial inclusion to support economic and social development. The cooperation is conducted in distribution of electronic aid and/or subsidy in energy through Prosperous Family Card (Kartu Keluarga Sejahtera, KKS). It is conducted to ensure that energy subsidy distribution may run as targeted. To support the energy subsidy distribution in a non-cash manner, Bank Indonesia will facilitate the coordination, regulation, monitoring, and supervision by using the previously applied business model of non-cash social aid, namely Hope Family Program (Program Keluarga Harapan, PKH) and Non-Cash Food Aid Program (Program Bantuan Pangan Non-Tunai, BPNT).

The aid distribution mechanism will consist of 4 main phases, namely registration/account opening, education and dissemination, distribution, and fund withdrawal or subsidy collection at the designated distributing bank outlets, such as bank agents and ATM. Meanwhile, to support the readiness of energy subsidy distribution operation, BI in cooperation with OJK will encourage 4 banks as members of the Association of State Owned Banks (BNI, BRI, Mandiri, and BTN) to prepare agency network and develop innovation in combo card (Prosperous Family Card) integrating different types of aids into one card.

In addition to financial access and aid distribution scheme, it is also agreed to apply Non-Cash National Movement for financial services within the MEMR in order to realize Less Cash Society. In the cooperation, it is also agreed to apply mandatory use of Rupiah within the RI in accordance with the provisions issued by Bank Indonesia in 2015.

Harmonious coordination between Bank Indonesia and MEMR is also expected to increase their work performance and support their duty implementation, including to maintain economic stability in a sustainable growth.

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