Bank Mandiri’s Initiatives on Financial Inclusion
Budi G. Sadikin Group CEO Bank Mandiri
The 2nd International Financial Inclusion Forum Jakarta, 23 October 2014
Financial Inclusion Profile in Indonesia
Indonesia populations today are
249 million
(2013)
37%
of population is low income
group, people that spending less than US$ 2 per day
20%
of Indonesian above 15 years
old has an account in formal financial institution
48%
of Indonesian does not
have access to financial services
© PT Bank Mandiri (Persero) Tbk.
Comparison of adult population (above 15 years old) that has account in formal financial institutions (in %)
© PT Bank Mandiri (Persero) Tbk.
Low financial penetration in Indonesia
© PT Bank Mandiri (Persero) Tbk.
Low financial penetration in Indonesia
© PT Bank Mandiri (Persero) Tbk.
Survey on reasons of high unbanked population in West Java pilot project Losari – Cirebon
Karang Ampel – Indramayu
Ranca Engkek – Bandung
1. Prefer to save at home (anticipation of harvest uncertainty 2. Long distance to bank’s branches 3. Prefer to use informal saving services (bandar/juragan). 4. Do not want to be bothered wit bank’s administration.
1. 2.
1. Income is just enough for daily expenses 2. Bani is complicated, should save in large amount, while they only have a small amount of leftover 3. Long distance to the bank, need transportation cost 4. More practical to save at home 5. Banking knowledge is low.
3.
4. 5.
Low income Does not want to be bothered with bank’s administration and queuing Prefer to save in Arisan or use it as business capital Prefer to borrow from relatives or neighbors Less trust to banking system. Has bad experiences with bank
6 © PT Bank Mandiri (Persero) Tbk.
Branchless Banking Agents
Pilot – Lessons Learned
Some Challenges
Distribution of BLT Using Branchless Banking/ Layanan Keuangan Digital Conditional Cash Transfer -PKH
Bank 1
Kemensos, BI, Bappenas dan TNP2K
2
Related Technical Implementation Unit
3
4
Recipients of PKH
AGENT LAYANAN KEUANGAN DIGITAL
Transaction Center
Distribution of BLT Using Branchless Banking/ Layanan Keuangan Digital Location and Number of Recipients of PKH City/Kabu
Kec
Number of village
Number of recipients
Number of Agents
Jakarta Utara
Koja
1
82
2
Jawa Barat
Cirebon
Astana Japura and Dukupuntang
13 and 11
1.172
6
Nusa Tenggara Timur
Kupang
Alak
1
89
2
1,343
10
Province DKI Jakarta
No
Agents’ Name
1 2 3 4 5 6 7 8 9
Hj. Siti Qoriah Rosyid Daya Komara Ulfatul Mahabah Nining Sunengsih Hj.Rohaeni Mohammad Fauzi Abraham Amheka Marince H Djingi Harijanto
10 R.Aly Huda Aby
Business type
Adress
Groceries Store Toko Mini Mart Small restaurant Water Depot Farming Groceries Store Groceries Store Groceries Store Services (Studio Foto, Wedding Package)
Dusun Manis I RT.01 RW.02. Desa Japura Kidul - Astana Japura- Cirebon Dusun 01 Blok pahing RT.01 RW.03. Desa munjul - Astana Japura - Cirebon Jl. Nyi Ageng Serang Blok Kadu tilu RT.001 RW.001 Sindang Mekar - Dukupuntang - Cirebon Jl. Pahlawan Dusun I RT.02 RW.02 Desa Mandala - Dukupuntang - Cirebon Jl. Cipanas, Blok Sawah Deukeut, Desa Cipanas - Dukupuntang - Cirebon Jl. LPI Pesantren Buntet RT.011/04 - Astana Japura - Cirebon Jl.Trikora , RT/RW.013/004 Desa Manutapen - Alak - Kupang Jl. Cekdam No.2 , Desa Manutapen - Alak - Kupang Jl. Balai Rakyat Rakyat Timur No.3 RT.0015/RW.03, Tugu Selatan,- Koja- Jakarta Utara - Jakarta
Mobile Phone Voucher Seller and Service
Jl.Raya STM Walang No.60, Tugu Selatan - Koja - Jakarta Utara - Jakarta
Profile of LKD’s Agent as PKH Disbursement Cirebon
Jakarta
Profile of PKH Disbursement Agent : Nuris Creative Koja - Jakarta
Name: H. Harjanto Age : 59 yo Business : Photo studio and PPOB Income : Rp. 10 million /month Education: Bachelor H.Harjanto, TNI AL retiree, is know as public figure and religious leader – Tugu Selatan – Koja - Jakarta
Name : M.Fauzi Age : 28 yo Business: Groceries Store Income : Rp. 6 million/month Education : Bachelor
Profile of PKH Disbursement Agent : Toko Lima Putera M.Fauzi, former employee of Astanajapura – Pharmaceutical Company in Bandung. Cirebon He continues his parents business
Profile of PKH Recipients though Agen LKD
Name : Runengsi Age : 39 thn Adress: Desa Mandala- Dukupuntang - Cirebon Occupation : Housewife Received fund from PKH : Rp.375.000
Name : Magdalena Terru Bara Age : 49 thn Adress: Desa Manutapen – Alak -Kupang Occupation: HousewifeIbu Rumah Tangga Received fund from PKH : Rp.250.000
Some lesson learned from G2P PKH Disbursement 1. Need more intensive and continuous financial education since targeted recipients in this program are people with low level of education 2. Mobile phone’s signal/networks in some locations are limited, therefore need some upgrading and cooperation with telecommunication operators. 3. Need more simple or less complicated technology 4. Need cooperation from relevant institutions such as government, BI and OJK, banking sector and telecommunication companies for better implementation of this program.
Thank You
