JAKARTA. On Monday, November 8, 2021, PT Bank CIMB Niaga Tbk (CIMB Niaga) signed an online collaboration agreement with PT Jalin Payment Nusantara (Jalin). CIMB Niaga collaborated with Jalin to expand the scale of banking transaction volume, as Jalin’s switching services under the brand “Link” operate one of the largest ATM networks in Indonesia today.
Lani Darmawan, CIMB Niaga Consumer Banking Director, stated that the relationship between CIMB Niaga and Jalin benefits both parties (mutualism). In this circumstance, CIMB Niaga can use all Link network channels to give consumers convenience and comfort when executing financial operations. From cash withdrawals to balance checks and fund transfers, all banking channels integrated into the Link switching network are available.
“We can improve operational efficiency while providing more benefits to customers by partnering with Jalin. It also forms part of our commitment to the cashless society movement “Lani stated.
Boyke Yurista, CEO of Jalin, welcomed CIMB Niaga, Indonesia’s second-largest national private bank, as a member of Jalin. This is a positive trend in the atmosphere surrounding Jalin’s 5th birthday, which occurred yesterday, November 3, 2021.
“We will continue to provide the best service to all Jalin switching service members so that all of our members can increasingly provide a better, faster, and safer transaction experience for all customers, including the Indonesian people in general.”
Boyke added, Jalin is committed to providing guaranteed safe and efficient financial transaction services to all CIMB Niaga customers and other members. The collaboration will provide benefits for the implementation of transactions carried out via electronic media channels, such as transaction management services via ATMs, as well as facilities and services that Jalin will develop in the future.
Jalin’s decision to become The National Digital Highway aligns with CIMB Niaga’s intention to make digitalization the Company’s primary strategy. CIMB Niaga expected digitalization to be a driver of business growth, along with a shift in the behavior of Indonesians who increasingly use digital channels for financial transactions.
CIMB Niaga is continuing to develop digital-based products to supplement the services offered by branch offices. As of September 30, 2021, digital banking services such as OCTO Mobile, OCTO Clicks, BizChannel@CIMB, Automated Teller Machines (“ATM”), and Mobile Accounts accounted for 96 percent of total customer transactions.
“Jalin is also targeting double-digit revenue growth in 2021 from Switching ATM Link, Switching Debit Link, Switching QRIS, and Managed Services to prepare Jalin for challenges in the coming year by developing new digital-based products and services that will be released next year,” Boyke said.
November 3, 2021, marks the five-year journey of PT Jalin Pembayaran Nusantara (Jalin) in Indonesia, who continues to play an active role in realizing the efficiency and sovereignty of the national payment system. Now, Jalin is ready to take a step forward in realizing its vision to become The National Digital Highway that provides convenience and more meaningful digital transaction experience in every step of the Indonesian people.
Jalin was established on November 3, 2016, by the initiative of the Ministry of SOEs, Telkom Indonesia, and the Association of State-Owned Banks (Himbara), namely BNI, Bank Mandiri, BRI, and BTN. Jalin’s business move began in 2017 when it obtained a Principal License for ATM Switching and a Principal License for Debit Switching and Clearing. Then, since June 19, 2019, following the direction of the Ministry of SOEs, Jalin’s majority shareholder changed, which was owned by Telkom Indonesia to PT Danareksa (Persero).
This is part of Jalin’s strategic step to support the cashless society movement promoted by the Government since 2014. As a starting point, Jalin provides two primary services, namely ATM switching and Debit switching with the “Link” brand to facilitate inter-bank transactions anytime, anywhere.
In 2018 Jalin obtained Operational Approval for the BI-RTGS System Participation. In the same year, Jalin continued its innovation by preparing ATM Managed Service business. This service was officially launched on January 1, 2019 and became one of Jalin’s core businesses in addition to switching services.
The ATM Managed Service is an innovation to provide support in managing ATMs owned by banks that are members of Jalin. The scope includes the maintenance of ATM machine and ATM cleanliness. This is in accordance with Jalin’s mission to support the management of technology-based national banking physical channels, thereby providing efficiency and increasing service security for Jalin bank members.
A new milestone in Jalin’s journey as a Switching Institution occurred in 2019 when the company received a permit as a QRIS operator by Bank of Indonesia (BI). QRIS (Quick Response Code Indonesian Standard) is a national QR code standard to facilitate digital payments through server-based electronic money applications, digital wallets, or mobile banking.
Through QRIS, QR code operators can be interconnected and interoperable. To support the implementation of the BI QRIS program, Jalin partners with several PJSPs (Payment System Service Providers) consisting of Banks and Non-Banks who are members of Jalin’s QR Switching service.
In 2020, Jalin also played an active role in supporting the merger process of 3 government-owned Islamic banks into Bank Syariah Indonesia (BSI), at the direction of the Vice President of Indonesia. This support was carried out through the integration of information technology systems of Bank Syariah Mandiri, BNI Syariah, and BRIS during the interim merger to become BSI.
Strengthening Foundations and Elevating Growth Value
Now, in its fifth year, Jalin is ready to transform into a digital enabler that connects people with financial and non-financial ecosystems. Titled “Jalin5ary” (Jalinfiversary), the number 5 in the logo reflected the spirit of the fifth anniversary, which combines blue and red colors with dynamic shapes and symbolizes digitization.
The tagline “In Every Step of Your Digital Way” complements the logo as a reflection of Jalin’s commitment in presenting a variety of new payment service innovations. Three main keywords make up this tagline; We Grow, We Transform, and We Make It Happen, which contain the mission of strengthening the foundation and elevating the growth value.
We Grow is a strategic step that becomes the initial foundation to face the era of digitalization and the changes of Jalin business landscape. The fundamental thing to do was by defining a new corporate culture, marked by the launch of JalinID culture on Jalin’s fourth anniversary. A year since its implementation, now JalinID plays a pivotal role in shaping the character of Jaliners who are more capable, synergistic, and resilient in facing changes due to business challenges and the pandemic.
We Transform is Jalin’s initiative in facing challenges in the VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) era in order to grow. This is marked by organizational transformation to strengthen the foundation and Jalin’s active involvement in various national economic development synergies initiatives, which is realized through the cross-border QRIS payment system and PMO Shared Service.
We Make It Happen is Jalin’s commitment in realizing an interconnected, interoperable, and efficient payment system in Indonesia, along with the technological advances and the increased mobility of people. This is presented through the addition of Link network members which currently have 31 members consisting of banks and non-banks, various business synergies with industry players, as well as investments in digital innovations.
To support interbank transaction infrastructure, Jalin also synergizes with BUMN and Himbara in developing various service features for Jalin member banks, including Himbara. Digital innovations and physical channels such as Automated Teller Machines (ATM), Cash Deposit Machines (CDM), and Cash Recycling Machines (CRM) are also being developed so that people’s financial activities can be more convenient.
Entering the fifth year, Jalin will continue its active contribution in realizing efficiency of the national payment ecosystem. At the same time, Jalin supports the Government’s program in expanding payment services that reach all corners of the country. Supported by business activities based on effective and good corporate governance, in the future Jalin will be more ready to accompany people’s every step of digital transaction way.
In 2018, Indonesia initiated monetary cooperation with two ASEAN countries marked by the Local Currency Settlement framework as a foreign currency exchange system. The two ASEAN countries are Malaysia and Thailand. Now, the implementation of this monetary policy continues to be pushed and has spread to Japan and China.
Local Currency Settlement (LCS) is the settlement of bilateral transactions carried out by two countries using the local currency prevailing in each country. This policy aims to reduce dependence on the US dollar currency for bilateral trade transaction settlement and maintain the stability of the local currency value.
The implementation of LCS is established through the cooperation of the central bank in each country. Then, the central bank appointed several banks in their respective countries to be an Appointed Cross Currency Dealers (ACCD).
The banks designated as ACCD are banks deemed to have the ability to facilitate transactions in foreign currencies following the agreed LCS cooperation framework. There are three basic judgments in the appointment of ACCD banks.
First, the bank was considered to have a good level of business resilience and health. Second, they are experienced in facilitating trade/investment transactions and can provide various financial services. Third, having good cooperative relationships with banks in partner countries.
As the central bank in Indonesia, Bank Indonesia initiated this LCS collaboration with Bank Negara Malaysia (BNM) and the Bank of Thailand (BOT). Then, LCS cooperation expanded in 2020 through an MoU signed between the Ministry of Finance of Japan and Bank Indonesia. Most recently, Bank Indonesia (BI) and the People’s Bank of China (PBC) officially started the LCS cooperation implementation on September 6, 2021.
There are four types of transactions facilitated by LCS, namely:
- Trade in goods and services between Indonesia and partner countries (receipt of import/export payments).
- Primary income transactions, such as receipt and payment of labor compensation transactions, as well as investment income (direct investment, portfolio investment, and/or other investments).
- Secondary income transactions, such as remittances that include receipts and payments from the government sector or other sectors. except for grants, prizes, donations, and/or the like.
- There is a direct investment between Indonesian LCS customers and LCS customers from partner countries, with a minimum limit. 10% ownership of the company.
Innovative Steps in Strengthening the Positively Welcomed Econmy
Before the LCS cooperation framework formed, bilateral trade transactions always used US dollars in the payment system. For example, if an Indonesian entrepreneur wants to trade with a Thai entrepreneur, they must convert Rupiah into dollars first and then exchange it for Bath currency, and vice versa.
That situation makes trade and business activities between the two countries inefficient because it takes more time to convert their money into US dollars. In addition, the currency exchange practice can also impact the value of the dollar to strengthen, which can indirectly make the local currency depressed.
Therefore, many parties gave a positive response when Bank Indonesia initiated the LCS cooperation framework. It is because the LCS cooperation framework considered providing many benefits for business players, such as:
- Without cross-rate with US dollars, transaction conversion costs become more efficient,
- Availability of alternative export financing/direct investment in local currency,
- Availability of alternative hedging instruments in local currency, and
- Diversification of exposure to currencies used in settlement of transactions.
Doddy Zulverdy, Executive Director and Head of Department of Bank Indonesia, explained that the implementation of LCS with partner countries has shown a positive trend. The application of LCS from Indonesia’s total trade with Malaysia in 2018 only reached 1.4 percent. In 2019, the share rose to 3.6 percent and 4.1 percent in 2020.
The same thing happened with Thailand. In 2018, the implementation of LCS only reached 0.6 percent. Its market share increased to 1.1 percent in 2019 and will rise to 1.3 percent in 2020.
In Japan, this upward trend is also visible. The portion only reached 0.7 percent in the first three months following the signing of the LCS agreement in 2020.It increased by 3.4 percent in the first six months of 2021.
The LCS policy is one of the innovative moves from Bank Indonesia’s many policies to create a better economy. The presence of LCS is also a breath of fresh air for business players because now they can use their respective countries’ currencies in completing bilateral transactions.
Thus, the dependence on the US Dollar currency for bilateral trade transactions settlement is expected to be reduced. In the end, this will help the country maintain the stability of the local currency value.
People’s anxiety has increased due to the uncertain situation caused by the pandemic, one of which affects the financial aspect. If not recognized and appropriately treated, financial anxiety can be dangerous for our mental health.
Financial anxiety is a condition when individuals show symptoms of being uncomfortable and unhealthy to engage with effective financial management. In short, this syndrome boils down to feelings of stress surrounding personal finances.
Recognizing Financial Anxiety Symptoms
If you have financial problems, it is not necessarily life-threatening. However, if these financial problems make you stressed excessively, there will be a different story to tell.
Therefore, the first step in overcoming this syndrome starts from recognizing the stages of the symptoms, namely:
- Constant feeling of stress
In the beginning, you will feel constant pressure that makes you want to get more, spend more, or achieve certain material milestones. If not managed, this will cause financial management vulnerabilities, just like in the late game of Jenga which can collapse at any time.
The pressure you feel in the beginning eventually can cause anxiety when not achieved. Whether you want it or not, it pushes you to do excessive work to reach a certain point of financial condition. However, it can ruin your health if you do this kind of lifestyle continuously.
- Difficult to prioritize things
Financial management requires an understanding of priorities in life. If you feel helpless and nervous when making financial priorities decisions, this could be an early signal that you are experiencing anxiety.
- Averse to think about finances
Eventually, you will decide to walk away – not even thinking about finances at all. It is a wrong decision and can lead you to an extravagant lifestyle. You will feel that you have a terrible relationship with money, or that money management is arduous, or think that it is impossible to get rich today.
- Feeling guilty
All of these symptoms will lead to guilty feelings. You feel that every penny you spend could be used for a better cause. On the other hand, if you save too much money, you are afraid to spend it and don’t know where to allocate it.
Dealing with Financial Anxiety
If you feel any of the anxiety symptoms mentioned above, at any level, it’s time to take action. There are some proactive steps you can take and develop into a routine to help deal with financial stress before it affects your mental health.
- Calm Down, You Are Not Alone
Personal finance issues are a common problem for everyone. So, try to calm yourself first with relaxing activities such as walking or breathing exercises to keep your mind from getting out of control. After that, you can face the problem with a clear head.
- Literate Yourself About Finance
After your mind is clear, try to change your relationship with money. The first step can start by improving financial literacy. Currently, information about financial management from various experts can be obtained easily on the internet, both free and paid. That way, you can rearrange your financial strategy.
- Learn to Prioritize
Once you’ve improved your relationship with money, you can start making financial priorities. Allocate your finances for various needs such as education, health, retirement, marriage, daily needs, or as a reward for yourself. Try to be disciplined in allocating your funds according to the priorities you’ve made and the income you have.
- Seek help from the experts
If everything you’ve tried doesn’t work, consider seeking professional help. All the more needed if the anxiety you experience has caused physical disturbances in life. Examples are insomnia, easily tired, difficulty in concentrating, cold sweats, tense muscles, and often loudly arguing about money.
Anxiety is normal, as long as it’s not excessive
Feeling anxious when faced with something is normal. It also applies to finances as long as it is not excessive.
Financial issues are a common problem faced by everyone. The desire to earn more and be financially independent is definitely on everyone’s mind. The thing that deserves attention is when these feelings of anxiety affect our lives negatively, both mentally and physically.
If you are already at this stage, the best thing you can do is seek professional help. After all, we need a good mental state to face problems in life. That way, we can reorganize the life we are living.
The banking industry has undergone many changes thanks to the rapid development of technology in the last decade. One of the innovations that were born and are becoming a hot topic of discussion among Indonesian people is digital banking.
However, what is the difference with conventional banks that we have known?
Digital banking is the digitization of every level of banking, from the front-end to the back-end. In other words, a digital bank should be able to facilitate all levels of banking functionality across all service delivery platforms.
From the front-end, banking activities should have all the same functions as banking services and be visible to consumers. For example, they function as a head office, branch offices, online services, bank cards, ATMs, and point of sale machines.
While from the back-end, banking activities that happen in front should be visible to bankers through the server and the admin control panel. Therefore, digital banks need to utilize technology to automate administrative tasks and data processing, which, in turn, can lessen the pressure on employees to complete daily tasks.
In Indonesia, the Financial Services Authority (OJK) defines a digital bank as an Indonesian Legal Entity Bank (BHI) that provides and carries out business activities primarily through electronic channels without a physical office other than the head office or using limited physical offices.
Bank BHI is an established bank that carries out its business activities under the applicable legal provisions in Indonesia as a limited liability company, cooperative, regional company, or other models stipulated by government regulations.
However, OJK does not define digital banking as a new type of bank. In the current banking act in Indonesia, we only recognize two types of banks, namely Commercial Banks and Rural Banks (BPR).
Differences with conventional banks
In terms of services, there is no significant difference between digital banks and conventional banks. Both can offer banking services such as savings, deposits, withdrawals, transfers, investments, and loans.
The difference lies in its form. Conventional banks have a physical form in the form of a head office and branches, while digital banks can operate only with a head office and usually do not require the presence of a branch office.
In addition, usually, other differences are found and visible from the advantages offered. Examples include lower administrative fees, cheaper or even no transfer fees, and higher interest rates. Of course, with the applicable terms and conditions issued from the bank.
Banking transformation needs to be supported
The term digital bank that is on the rise does not change the bank institutionally because the bank is still a bank. A bank is a financial institution that provides services to save, distribute, and provide loans to the public. Digital banks themselves can be present in two ways, according to POJK 12/POJK.03/2021.
The first method is by establishing a new bank as a digital bank. The second method is by transforming an existing bank into a digital bank like BRI Agro when changing its name to Bank Raya and officially changing its business model to a digital bank.
OJK does not issue special licenses for digital bank operations. However, to transform into a digital bank, existing banks need to meet several applicable requirements, such as:
- Have a business model using innovative and secure technology to serve customer needs.
- Have the ability to manage a prudent and sustainable digital banking business model.
- Have adequate risk management.
- Fulfill governance aspects such as the fulfillment of directors who have competence in the information technology field and other competencies under OJK regulations regarding the fit and proper test for the main parties of financial service institutions.
- Actualize protection against customer data security.
- Contribute to the advancement of a digital financial ecosystem and financial inclusion.
In the end, the presence of digital banks in Indonesian society has become an alternative to accessing financial services that are easier, faster, and transparent. People only need a smartphone and an internet connection to access banking services with their hands.
The growth of digital banks in Indonesia has also just begun, so we can see many industry players rushing to establish digital banks in various ways. Start from acquiring a small bank and turning it into a digital bank to incorporate a new entity. It is inseparable from the extensive range of unexplored potential.
However, on the other hand, digital banks also have lots of homework that needs to be solved well, namely security. The threat of cyber-attacks cannot be underestimated in this technological era.
However, we also cannot deny that all the advantages offered by digital banks, of course, still need support to transform banking services. Its presence can make Indonesian banking more efficient, adaptive to technological developments, make a better contribution to the national economy, and provide broader benefits for the people of Indonesia.
Jakarta, October 1, 2021 – PT Jalin Payment Nusantara (“Jalin”) signed an online Cooperation Agreement (PKS) with PT Bank Pembangunan Daerah Jawa Timur Tbk (“bankjatim”). The agreement is part of Jalin’s efforts to broaden the reach of banking switching services for the Regional Development Bank (“BPD”) segment. Bankjatim is the first BPD bank book 3 to join Jalin, with total assets of IDR 95.48 trillion.
CEO of Jalin Boyke Yurista stated that this collaboration is a good synergy between companies, particularly during the current pandemic recovery period. “Jalin will provide integrated solutions for all members by providing the best service and continuing to innovate products in order to meet future challenges,” Boyke said.
Through this partnership scheme, Jalin and bankjatim will also open up opportunities to collaborate in accelerating digital financial transformation, an initiative launched by bankjatim that not many BPDs have done. Tonny Prasetyo, Director of Information Technology and Operations bank jatim, stated that the bank is currently conducting intensive innovations based on digital services for its members. “We must continue to adapt in the face of the current pandemic, one way being through the most recent digital branding, namely JConnect. The good cooperation between bankjatim and Jalin will continue to be improved and sustainable in the future “Tonny stated.
Support to bankjatim is provided by following the company’s strategic plan to transform Jalin into a digital enabler that connects the community with financial and non-financial ecosystems, thus making it a National Digital Highway. The aim is to strengthen the efficiency of business processes and services for Jalin members. “In the future, by participating in the implementation of the Bank Indonesia Payment System Blueprint 2025 and being directly involved in Open API and Open Banking services, we will provide convenience and ease of financial transaction systems to the public through products and services,” Boyke added.
In 2021, Jalin expects Switching ATM Link, Switching Debit Link, Switching QRIS, and Managed Services to make a contribution double-digit revenue growth. Jalin has also developed a solid digital platform that will enable prudent, safe, and competitive growth through strong governance management. According to the management report for the second quarter of 2021, Jalin’s switching service processed more than 400 million transactions, and the managed service business segment grew by operating more than 13,000 SLM and Premises ATMs, an increase of up to 100% over the same period the previous year.
Jalin has become a company that is committed to providing services to all members through business activities that are based on excellent and effective corporate governance. Jalin also consistently strives to run the business by implementing risk management for all transactions carried out in order to provide members with a sense of security. “As a company that relies heavily on technology devices, information systems, and networks, we always maintain the trust and security of Jalin member transactions in accordance with the guidelines and standardization required by ISO 27001:2013,” Boyke concluded.