Four Indonesian state-owned banks have launched a pooled automated teller machine (ATM) service that lowers transfer and withdrawal fees in an effort to increase transactions while reducing operating costs.
Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia and Bank Tabungan Negara are jointly rolling out the ATMs with charges of only Rp 4,000 per interbank transfer and Rp 500 per withdrawal – which is a reduction of between 50 and 90 percent from charges incurred on existing ATMs. If successful, this would save an estimated Rp 6.8 trillion ($490 million) each year in capital expenditure and maintenance.
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Currently, it is still being run on a trial basis to establish procedures. The banks have thus far installed about 50 ATMs in the Greater Jakarta area and plan to have 800 in place during the course of 2016. Altogether, the four banks operate nearly 56,000 of their own ATMs at present. To boost efficiency, the four banks might acquire an existing company that facilitates interbank transactions.
Based on data from the International Monetary Fund, Indonesia has one ATM per 2,000 adults – which is about the same as in Malaysia but double that of the Philippines.
Pooling ATM services is not just part of an effort by the Indonesian financial authorities to enhance interbank cooperation, it might be the first step towards the merger of Indonesia’s four state banks – although a full merger of the four entities has yet to be discussed.
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