BI introduces real-time settlement system

BANDUNG (JP): Bank customers in Bandung can now benefit from Bank Indonesia's real-time gross settlement system (BI-RTGS) following the launch of the new settlement system in the city on Tuesday.

The deputy governor of the central bank, Aulia Pohan, said that the new system in Bandung was the first to be implemented outside of Jakarta and would be the pilot project for implementation in other major cities across Indonesia.

He said the central bank also planned to introduce the new settlement system in Surabaya in East Java, Yogyakarta, Manado in North Sulawesi, Balikpapan and Samarinda in East Kalimantan, Semarang in Central Java, Denpasar in Bali, Medan in North Sumatra, Padang in West Sumatra, Pekanbaru and Batam in Riau.

Bank Indonesia first implemented the BI-RTGS system in Jakarta in November as part of its commitment to provide a more reliable, faster and efficient settlement system.

Aulia said that 90 percent of the interbank transactions had been carried out through the new system, with total value of Rp 40 trillion per day.

The new system is aimed at banks and individual customers wishing to transfer large amounts of funds within a short time, whereas the speed of the transaction is the key factor in business, he said following the launch of the new settlement system.

With the implementation of the new system, accounts of bank offices in the central bank in Bandung will be transferred to a centralized settlement account at the central bank's headquarters in Jakarta. In the existing system, the accounts are managed through the central bank's office in Bandung.

The centralized settlement account will also enable the central bank to properly monitor the bank's obedience in complying with BI's regulations and its liquidity, he said, adding that the system could function as an early warning system for banks with liquidity problems.

The chairwoman of the central bank's team for the development of the national service system (PSPN), Dyah Nastiti K, said the implementation of BI-RTGS did not mean the usual clearing system would be eliminated, but that it would serve as an alternative to interbank fund transfers.

"This way people can have a choice. For those with large amounts of money or needing a quick transfer, they can use the BI-RTGS. But those with smaller amounts and who don't mind the extra time it takes can use the old system, which is through clearing," she said. (25/tnt)