BI urges banks to digitize quickly

 

Jakarta Bank Indonesia (BI) Governor Perry Warjiyo has urged banks to digitize quickly, saying that currently, there are around 10 to 15 banks that have made a strong push for digitalization.

“We are not only supporting, but encouraging our banks to digitize. I am proud that 10 to 15 banks in Indonesia have been digitizing very strongly,” Warjiyo said at the CNBC Economic Outlook event in Jakarta on Thursday.

Fifteen banks, including state-owned banks such as BRI, have so far taken dedicated steps towards digitalization, he noted.

He said BI is working with the Financial Services Authority (OJK) to maximize digitalization in the banking sector.

“We are encouraging the digitalization of the payment system. Now all banks are using QRIS so that they can enter the retail market,” he elaborated.

Chairman of the board of commissioners of the Financial Services Authority (OJK), Wimboh Santoso, has assured support for digitization of the economy and the financial sector in Indonesia.

OJK is encouraging all banks to develop digital business processes as that would make transactions easier for the public, especially in the midst of the COVID-19 pandemic, he said. “From the beginning, we have encouraged financial digitization and we have made the digital financial development center at the OJK and formed a regulatory sandbox there,” he added.

The OJK is currently formulating regulations on the establishment of digital banks, which include a minimum capital requirement of up to Rp10 trillion.

“For the establishment of a new digital bank, the requirement is Rp10 trillion. Accompanied by digital bank requirements, such as having the ability to manage prudent and sustainable bank business, protection of customer data,” executive director of banking research and regulation at OJK, Anung Herlianto, said earlier in Jakarta.

The provisions regarding digital banks are currently still at the early drafting stage, he added. OJK will consult with industry players to finalize the regulations, he said.

He also said he has received a number of inputs from the public, so the minimum capital requirement may change at a later date.

The establishment of a digital bank can be divided into two types, he informed. The first involves setting up a new entity that fully operates as a digital bank. The second involves transforming an already operational conventional bank into a digital bank.

 

 

 

Source: Antara News

 

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