KEY BANKING REGULATIONS
B. BI Regulations that Still Valid
6. Branchless Financial Services in the Context of Inclusive Finance (Laku Pandai)
Pursuant to OJK Regulation No.19/POJK.03/2014 dated 19 November 2014 concerning Branchless Financial Services in the Context of Inclusive Finance (Laku Pandai)
Laku Pandai is a program of banking services provision and/or other financial services through a collaboration with other parties (bank agents) and supported by the use of IT facilities. Laku Pandai is required considering that:
a. There are still members of the society who have not known, used, and/or gotten banking services and other financial services, among others because they reside in a location away from the bank office and/or due to burdensome requirements or costs;
b. OJK, banking industry and other financial services industry are committed to support the realization of inclusive finance;
c. The Government of Indonesia had launched a program of National Strategy for Inclusive Finance (SNKI-Strategi Nasional Keuangan Inklusif) in June 2012, among others, branchless banking; and
d. The existing branchless banking needs to be developed to allow banking services and other financial services to reach all levels of society
efforts of economic growth and equitable development inter-regions especially villages and Eastern Indonesia by providing access to small communities to be able to conduct financial transactions specifically banking wherever the communities are; and provides financial products that are simple, easy to understand and in accordance with the needs of the people who currently have not been able to reach financial services. Products provided by Laku Pandai are:
a. Savings with characteristics of Basic Saving Account (BSA) namely :
1) No minimum threshold for balance and cash deposit transactions, but there is a maximum threshold for balance at any time by Rp20 million and a cumulative threshold for account debiting transactions cumulatively at each month amounted to Rp5 million;
2) No monthly administrative costs and no charges for the account opening and closing as well as account crediting transactions among others for cash deposits;
The complete characteristics of BSA savings are illustrated below:
Figure 5.2 Characteristics of BSA Savings
Individual Indonesian Citizen
No minimum
balance No minimum
deposit
Provides benefit and various facilities Gets interest/
profit share from account balance Rp. 1,00
b. Credit/Financing to Micro Customers.
Credit/financing which aims to finance productive business activities and other other activities that support inclusive finance, such as agriculture, plantation, opening stalls and financing higher education
c. Micro Insurance
Insurance products intended to protect low- income communities with low premiums, for example, among others health insurance for dengue fewer and typhoid, and insurances for fire, accident and earthquake.
By having BSA savings, people can deposit their money in a bank without having to worry that their balance of savings will be decreasing due to account administrative costs, and they even will still receive interests for the savings and also guaranteed by LPS. Besides, people can also make transactions without having to come to the bank office location, but just make a to visit the location of the Laku Pandai agent which is closer to home.
Requirements for having BSA savings are Indonesian Citizens (WNI) and do not have any savings yet and are willing to only have 1 (one) savings in the said bank.
In the event the period of BSA savings ownership has reached 6 months or might be less than 6 months provided that it meets certain considerations from the provider bank, the owner of the BSA savings can submit an application for obtaining micro customer loans.
The application for credit/financing can be submitted by the BSA customers to the bank office (sub-branch office/KCP), or through an agent to be forwarded to the nearest bank office supervising the agent.
Laku Pandai provider Banks are banks that meet the following requirements:
a) Incorporated in Indonesia;
b) Have risk profiles as required;
c) Have office networks in Eastern Indonesia and/
or Nusa Tenggara Timur;
d) Have products and activities of sms banking/
mobile banking and internet banking/host to host; and
e) Have obtained approvals from OJK.
Meanwhile, agents are the parties which work in cooperation with the Laku Pandai provider banks (individuals/corporations) which are the extensions/representatives of banks to provide banking services in the context of inclusive finance.
Agents can provide services to customers in accordance with the scope of services according to their cooperation agreement with banks as illustrated below:
Individual
(Teachers, retirees, traditional leaders, stall owners or leaders/owners of non-legal entities enterprises, i.e.
CV or Firms)
Legal Entities
(Limited Liability Companies, Regional Companies, Cooperatives)
a. Local people.
b. Have activities in the location as their main income source.
c. Have skills, credibilities, reputations and integrities.
a. Incorporated in Indonesia permitted to conduct activities in financial sector or own retail outlets.
b. Have business activities in the location.
c. Have adequate IT.
d. Have good reputations, credibilities and performances.
Pass the due diligence by the provider bank
Figure 5.3: Service Coverage and Classification of Laku Pandai Table 5.5 Types of Laku Pandai Agents
a. Transactions related to savings with BSA characteristics, including opening of account, deposit and cash withdrawal, transfer, payment of bills, fund transfer, balance checking, and/or closing of account;
b. Transactions related to credit or financing for micro clients, including receiving application documents, distribution of liquid fund, billing or receiving payment of installment and/or payment of loan principal;
c. Transactions related to savings other than savings with BSA characteristics, including deposit and withdrawal, transfer, payment, and/or fund transfer with maximum of Rp. 5,000,000 per day per client;
d. Transactions related to other financial services in accordance to the applicable regulations.