JAKARTA (TheInsiderStories) - Four state owned banks which are members of the Association of State-Owned Banks (HIMBARA) have launched joint Automatic Teller Machine called ATM HIMBARA and followed by creating switching company. The synergy is part of the State Own Enterprises (SOEs) Ministry plan to create a virtual holding between the state banks.
The four state banks are PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Negara Indonesia Tbk (IDX: BBNI) and PT Bank Tabungan Negata Tbk (IDX: BBTN). The consolidation, is estimated to cut operational costs of the banks by up to Rp6.8 trillion ($489.21 million) per year.
SOEs Minister Rini Soemarno said the move forms part of efforts to increase state-owned banks’ efficiency in the future an in a bid to enhance competitiveness and efficiency ahead of the ASEAN Economic Community (AEC).
Meanwhile, HIMBARA Chairman Asmawi Syam added that in the first phase there will be 50 HIMBARA ATMs in Greater Jakarta and then ex[ected to consolidate their 800 ATMs in 2016.
The Head of the Financial Services Authority (OJK) Board of Commissioners Muliaman D. Hadad said the synergy is very important since the state-owned banks accounted for 50 percent of assets in the banking industry. He expects, National Bank Association (Perbanas) also followed the HIMBARA programs.
CEO of Bank Mandiri Budi Gunadi Sadikin added that the synergy would cut ATM operational costs for the banks, investment, as well as reduce customers’ transaction cost up to 75%-meaning hundred billions of rupiah—starting next year.
After merging the ATM link, he said, the next step for HIMBARA is looking to create or acquire switching company. The banks expected the new service provider company will be established in the first quarter of 2016.
The state banks, he added, wants to do the bank transactions through the new unit from currently through Visa or Mastercard. Currently, Budi stated, there are two options to reach the target through acquisition or building a new one.
He said, recently, the banks are in talks with three parties such as telecommunication operator PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT Indosat Tbk (IDX: ISAT) and PT Rintis Sejahtera.
“We will create something like China Union Pay,” he said. He expressed his hope that all banks in Indonesia will make clearance and settlement through the new switching company.
Until December, the state banks own 55,804 ATMs across the nation or almost half of ATMs in the national banking industry. (*)