BRI, DBS Bank strike deal on remittance services

Fadli, Singapore

Bank Rakyat Indonesia (BRI) has signed a deal with Singapore's DBS Bank to provide cheaper and faster remittance services for Indonesian workers in Singapore.

Under the deal signed on Thursday, Indonesian maids working in the city state can send money to their home villages through DBS, which is linked with BRI, for a remittance fee of S$13 per transaction.

BRI is the largest bank in terms of network in Indonesia, with about 4,000 offices across the country, many in rural areas.

BRI president Rudjito said the new service was expected to make it easier for Indonesian maids in Singapore to send money home.

Currently, many of the maids simply carry all of their money in cash when they return to Indonesia, making them vulnerable to criminals and crooked officials at Cengkareng airport. Others send their money home via brokers who charge them between S$20 and S$25 per transaction.

There are about 55,000 Indonesians working as maids in Singapore, according to the Indonesian Embassy in Singapore.

According to Rudjito, the maids' salaries range from between S$230 and S$500 per month. If all of the maids sent home half of their monthly salary, the total amount would reach S$6 million per month.

Rudjito said DBS would simply transfer the funds to BRI if maids sent funds to someone already with an account at the bank. If the recipient does not have a BRI account, bank officials will deliver the money to his or her home.

DBS managing director and head for South and Southeast Asia, Rajan Raju, said DBS had also reached a similar deal with Bank Danamon, which also has a wide network in Indonesia.