Global Payments Week September 21, 2016 Turin, Italy
Greenback 2.0 Lombok
Objective of Greenback 2.0 in Indonesia
Encourage the development of a transparent and efficient remittance market Increasing the awareness of migrant workers (international as well as domestic) and their families on the existence and benefits of regulated financial services.
Migrant workers and their families will have better information and access to available financial services, and ultimately contributing to the improvement of their welfare. (Influencing behaviors in two GB JB and Lotim)
Providing a platform of Greenback 2.0 where other partners can also implement initiatives that are complementary. (e.g. government payments, digital village, single window migration support, etc)
NTB is the third largest province where IOMWs originated from 16,109 12,054 4,869 4,257 3,307 2,348 2,221 1,856 1,403 1,212 804 789 786 586 556 528 428 422 294 179 135 132 227
LOMBOK TIMUR INDRAMAYU LOMBOK TENGAH CIREBON (KAB) CILACAP KENDAL SUBANG LOMBOK BARAT LAMPUNG TIMUR PONOROGO CIANJUR BREBES BLITAR TULUNGAGUNG BANYUWANGI KARAWANG MALANG BANYUMAS SUKABUMI (KAB) MAJALENGKA MADIUN PATI SUMBAWA KEDIRI GROBOGAN
JAWA BARAT JAWA TENGAH NUSA… JAWA TIMUR LAMPUNG SUMATERA… BALI BANTEN NUSA… SULAWESI… KALIMANTAN… DI YOGYAKARTA SUMATERA… DKI JAKARTA KEPULAUAN… SUMATERA… ACEH SULAWESI… RIAU JAMBI SULAWESI… KALIMANTAN… BENGKULU KALIMANTAN… SULAWESI… SULAWESI… LAINNYA 57,077 51,743 48,312
63,102
Why Lombok Timur? (1) The number of Indonesian migrant workers originating from NTB/Lotim is very high 30,000
25,000
20,000
15,000
10,000 5,000
-
Lotim is the largest regency/city where IOMWs originated from; around 50% of NTB’s IOMWs came from Lotim Source: BNP2TKI, Jan-Des 2015
Why Lombok Timur? (2) The majority of Indonesian migrants from NTB and Lotim work in the Malaysian Peninsula EAST MALAYSIA (N=257)
MALAYSIAN PENINSULA (N=36,607)
Lombok Barat 6% Lombok Tengah 14%
Bima 47%
Bima 2%
Lombok Utara 2%
Sumbawa 1%
Lainnya 0%
Mataram 0% Lombok Barat 11%
Lombok Tengah 20% Lombok Timur 64%
Sumbawa 2%
Lombok Timur 31%
97.7%
2.3%
More than half of NTB’s IOMWs who work in the Malaysian Peninsula originated from Lotim, the majority are men Source: BP3TKI Mataram, 2014
Why Lombok Timur? (3) There is still room to increase remittance flows through regulated channels to Lotim Remittances by Districts (IDR, 2014) Kab. Bima, 48026682
Kab. Sumbawa, 101700921
Kab. Dompu, 2574042
• Encouraging the use of regulated channel (remittances, payments, savings and loans) • Providing remittance services that are more accessible and convenient • Enhancing IOMW’s capability in making financial decisions that are more responsible
Kota Mataram, Lobar, KLU, 173912697
Kab. Lotim, Kab. Loteng, 1981098 4071600
Source: BI, 2014
Activities in Project Greenback will raise awareness of IOMWs and their families on the benefits of using regulated channels in sending, receiving and utilizing remittances, as well as encourage remittance service providers to improve the accessibility of their services in IOMW’s origin in Lotim
Video is available @ worldbank.org/ID and youtube.com/worldbank
Profiles of Greenback 2.0 villages in Lotim
No. of HHs % MWs % Banked Remit Channel Social Assistance
Financial Services Payment Method Network
Desa Perigi, Kec. Suela
Desa Loyok, Kec. Sikur
Desa Tetebatu Selatan, Kec. Sikur
2,531
1,898
1,350
25
40
50
<5
30-40
< 10
Account mediators
Account mediators
Account mediators
PKH, KIS, Raskin, BSM
PKH, Raskin, KIS
PKH, Raskin
Only agent
Neighbour village
Neighbour village
Mostly cash; electricity MKios
BPJS thru agent, electricity Mkios, other cash basis
Majority cash
Dominant XL, Telkomsel
Dominant XL, Telkomsel
Dominant XL 8
Greenback 2.0 Lombok Timur
Activities Baseline • Need assessment • Baseline survey
Intervention • Infrastructure: introduce access point in Lotim • Financial education program: financial management, types of financial products/services available, benefit of using regulated channels
Progress Tracking • Monitoring • Final assessment • Lesson learned
Terima kasih banyak Grazie mille
