Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >> Finance  >> Indonesian banks ready for new real time settlement system
NEW UPDATES Asean Affairs  3  February 2014  

Indonesian banks ready for new real time settlement system  

Local banks have said that they are ready to implement the new version of the real time gross settlement (RTGS) system, scheduled to be launched this year by Bank Indonesia (BI) in an effort to make transactions more efficient ahead of the ASEAN Economic Community (AEC).

Edy Utomo, the head of Bank Rakyat Indonesia’s (BRI) central operations division, said the state-owned lender had prepared everything for the new settlement system last year. “We are waiting for the central bank to give the go-ahead,” he said on Thursday.

The new RTGS would potentially boost BRI’s RTGS business, both in transaction volume and transaction value, as it would enable money transfers in foreign currencies, Edy said.

“We have prepared the system to allow transfers in various currencies, including in US dollars, Malaysia’s ringgit and Thailand’s baht,” he added.

BRI currently records around 11,000 transactions per day and claims to be among the top three banks, after private lender Bank Central Asia (BCA) and state Bank Mandiri, which dominate the domestic RTGS business with a combined 50 percent market share. Its fee-based income turnover is estimated to reach Rp 79.2 billion (US$6.48 million) annually.

The RTGS is a system that allows fund transfers to be carried out in real time among banks, with BI acting as the settlement facilitator. As many as 144 banks and non-bank institutions are official RTGS participants.

At the moment, RTGS accounts for 95 percent of total transactions in the domestic payment system. Only rupiah-denominated funds can be transferred using the system and the minimum amount is set at Rp 500 million per transaction.

BI executive director for payment system Rosmaya Hadi said that BI was working to develop the new multi-currency RTGS system and that it would hopefully be introduced to the banking industry in the second half of 2014.

As previously reported, the 10 countries within ASEAN are expecting the AEC to come into effect in 2015.

Under the ASEAN single market, there will be free flow of goods and services within the member countries as all tariff and tariff barriers will be lifted.

“With this [new RTGS] system, a bank customer can carry out multi-currency transactions in minutes through non-cash payments,” Rosmaya said.

Meanwhile, data from the central bank shows that as of November 2013, the total monthly value of RTGS stood at Rp 7,340 trillion, generated from 1.45 million transactions. Compared to November 2012, the value grew 16.7 percent, but the volume of transactions was down 6.2 percent.

Feri Andajaya, Bank Negara Indonesia’s (BNI) deputy general manager for operations division, said that the improved RTGS system would attract more customers and, in the end, generate higher fee-based income for the state lender.

“Right now, the average daily transaction volume reaches 15,000 and the value stands at about Rp 13 trillion per day from both incoming and outgoing RTGS,” he said.

According to Feri, the upcoming campaigns during this political year will also drive RTGS transactions higher as the activities are expected to increase money transfers.

Separately, Bank Permata transaction banking head Rudy Tandjung said that Permata’s team, along with those of other lenders, would hold a trial to test the new system within the next few days.

According to Rudy, the private lender handles more than 5,000 transactions daily and that it has recorded a 20 percent compound annual growth rate over the last three years in its RTGS business.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    February 3, 2014 Subsribe Now !
• Govt calls on Election Commission to hold new polls within one week Subcribe: Asean Affairs Global Magazine
• One airline is enough: report
• Indonesian banks ready for new real time settlement system
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• First 15 Filipino construction workers due in Singapore in March
• Peso sinks on Fed decision to cut bond purchases, but 4Q GDP trims losses
Asean Analysis                    3 February  2014 Advertise Your Brand
• Asean Analysis-February 3, 2014
Indonesia bids to woo carmakers away from Thailand
Asean Stock Watch     30 January 2014
• Asean Stock Watch-January 30, 2014
• Asean Analysis-January 31, 2014
U.S. Spying a Threat to Global Climate Deal

The Biweekly Update
• The Biweekly Update  January 24, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand