Malaysia, RI announce first cross-border ATM network
The Jakarta Post, Jakarta
Against a backdrop of an increasing number of Indonesian workers in Malaysia, in addition to tourists and students, a joint Automatic Teller Machine (ATM) network between the two nations was launched on Thursday.
The service would be provided through banks in the two countries through membership with electronic payment service provider PT Artajasa Pembayaran Elektronis (Artajasa) from Indonesia and its counterpart, the Malaysian Electronic Payment System (MEPS).
Mohamad Ishak, Bank Indonesia's director for accounting and payment systems, said during the launching ceremony that the deal was part of the central bank's larger plans for establishing cross-border payment systems within the region.
Asked why Malaysia was selected first, Ishak replied: "Aside from considering tourists and traveling business people, we are also concerned about our workers in Malaysia, who are prone to become targets of crime when carrying their cash in and out of the country."
Artajasa director Arya Damar said that the company has more than one million card holders across the country.
Under the agreement, "the card holders (under the network of the two providers) can withdraw cash from 5,500 Indonesian and 4,500 Malaysian ATMs under MEPS," said Arya, adding that as such it would significantly reduce people's risk in carrying cash when traveling between the countries.
"A Rp 18,000 (about US$2) fee for each transaction made will be charged to the issuing banks," said Arya, although he was quick to add that it was up to the banks as to whether they charged the full cost to their customers or not.
The Indonesia-Malaysia cooperation is only an initial stage in the development of a regional network of banks, with the central bank also making a similar deal with Singapore.
Artajasa, operating since 2000, is a local electronic payment service provider known for its product ATM Bersama -- a shared ATM concept, bringing together major banks such as Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Bank Danamon and Bank Niaga as its members.
The firm also listed Indonesian rural, regional and international banks operating in the country including Korean- based Woori, the Netherlands' ABN AMRO and British Standard Chartered within their ATM network.
Meanwhile, MEPS serves 12 partnering banks, among them Bumiputra-Commerce Bank, Bank Muamalat Malaysia and Malayan Banking.
"This cooperation marks an achievement by both companies in providing financial services in their respective countries," said MEPS managing director Dato' Mohd Hata Robani.
Over time, the transaction services provided under the agreement would be expanded. (003)