Understanding the Latte Factor and its Impact on Personal Finance

Understanding the Latte Factor and its Impact on Personal Finance

The term “latte factor” was popularized by America’s bestselling financial author David Bach. This term refers to various small routine expenses that can have a large enough impact on our finances. In fact, these expenses are not necessary and can be eliminated.

The word “latte” is taken from one type of coffee serving that is quite popular called Caffe Latte, which is a mixture of coffee with milk and has a thin layer of foam on top. Its use in latte factor refers to the habit of people who unknowingly buy coffee on a regular basis to increase their productivity.

According to David Bach, coffee is one of the small-scale expenses that can have a total expenditure exceeding the cost of electricity and water if it is done regularly in a month. The spending on coffee itself is usually not that important. However, if it is done continuously, the impact will be felt on financial management.


Latte Factor in the Digital Era


The discussion about latte factor cannot be separated from financial management. It is not only about excessive coffee consumption, but also describes various less important routine expenses. The examples are buying snacks, eating out, buying cigarettes, buying bottled drinks, and others.

Small urgent expenses that can develop into someone’s latte factor also remain in this digital era. For example, an employee can spend around IDR 360,000 – IDR 648,000 in 24 working days if he is used to taking online transportation modes to go to work. This basis of assumption is from the cheapest fare calculation for motorbike which is around Rp. 15,000 – Rp. 27,000.

However, the calculation is only based on the cost of traveling from place of residence to office. If the same employee chooses to use online transportation to return home after work, his expenses would be doubled or more.

In addition to online transportation, the extra costs in banking services can also be considered latte factor. Customers can spend up to hundreds of thousand rupiah if they have high frequent interbank transfer activities. For example, transferring money between different banks at least once a day for 30 days with fee per transaction around IDR 6,500.

The two examples above are latte factors that are common today. However, minimizing the latte factor does not mean prohibiting an employee from leaving for work using online transportation modes or prohibiting customers from transferring money to a different bank.

An employee can commute to the office using an online transportation affordably when he gets a discounted promo. If there is no promo, he can use the Transjakarta bus or other public transportation that offers low cost. He can also opt to use private vehicles such as motorbike to avoid traffic.

The same principle also applies to bank customers. He can use ATM Link which offers banking services such as balance inquiry, cash withdrawals, and transfers at a more affordable cost. In addition, digital wallet or third-party applications that offer cheaper rate can also be a solution.

Meanwhile, for fans of online shopping, promotional programs from the marketplace can be a simple solution to minimize the latte factor. Examples are free shipping promotions, cashback, discounts, and many more.


Managing Latte Factor


The best way to identify our latte factor is to track it down. The trick is to keep a record of expenses for every penny we spend each day. Also, take advantage of the balance information and mutation feature to track the expenditure and income.

Recording these expenses must be done consistently for at least one to three months to get the best results. That way, we can better identify the weakest areas in our spending. If we have found it, we can reduce our latte factor according to our financial capabilities.

Even so, the latte factor itself is not about sacrificing the happiness we deserve from the “latte” in a cup of coffee. It is about how we can filter things that give more value to our lives.

If we can reduce or even eliminate those extra expenses, our quality of lives will be better. We can divert the extra money for more useful needs, such as pension investment, health investment, education investment, and many more.

The Partnership Synergy Between Bank Sumut and JALIN for the Betterment of Indonesia

The Partnership Synergy Between Bank Sumut and JALIN for the Betterment of Indonesia

Bank Sumut and Jalin (PT Jalin Pembayaran Nusantara) have signed a memorandum of understanding for membership cooperation in a virtual ceremony on Wednesday, August 18, 2021. This signing event marks that Bank Sumut officially joining the Link network managed by Jalin as the biggest BPD Book II member. The expectation of the firmly established partnership synergy between the two companies is to support the payment industry advancement in the Republic of Indonesia.

The signing ceremony was attended by Mr. Boyke Yurista as CEO of Jalin and accompanied by Mr. Eddy Sofryano as COO of Jalin, Mr. Aries Barkah as CCO of Jalin, Mr. Fajar Adimarta as CTO of Jalin, Mrs. A. Pawitra as CFO of Jalin, and several employees of Jalin. In addition, Mr. Rahmat Fadillah Pohan as the Director of Operation of Bank Sumut was also present and accompanied by Mr. Hadi Sucipto as Marketing Director of Bank Sumut, Mr. Irwan as Director of Business & Sharia, Mr. Eksir as Director of Compliance, and division heads with several employees of Bank Sumut.


With the signing of this cooperation, Bank Sumut customers now can proceed transactions through the ATM Link network spread throughout Indonesia. Currently, the number of ATM Link itself has reached 43,000 units.

Through this collaboration, Bank Sumut and Jalin are ready to growing up and synergize together to strengthen the payment system industry for the betterment of the beloved Republic of Indonesia.


Event documentation:


Five Advantages of Chip-Based ATM Cards

Five Advantages of Chip-Based ATM Cards

Currently, Indonesian banks encourage their customers to replace their magnetic stripe-based ATM cards with chip-based ATM cards. This step is a follow-up to the letter issued by Bank Indonesia regarding the replacement of ATM cards. If customers aren’t replacing their ATM cards, they cannot make transactions because the banking system will automatically block the use of magnetic-stripe-based ATM cards starting from December 21, 2021.

This blocking is under the BI Letter Number 17/52/DKSP concerning the Implementation of the National Standard for Chip Technology and Use of Personal Identification Numbers on ATM Cards and/or Debit Cards issued in Indonesia. The chip-based ATM card itself is already used widely by banking systems in various countries and has become a global standard.

One of the goals of replacing ATM cards with chip-based ones is to increase card security. Bank Indonesia has also set NSICCS as the national standard for chip technology on ATM/Debit cards which refer to EMV and the global platform in the preparation. NSICCS stands for National Standard for Indonesian Chip Card Specification.

So, what are the advantages of this chip-based ATM/Debit cards? Check the following explanation.


1. Safer Transactions


Better card security is one of the advantages offered by chip-based ATM cards. The chip technology embedded in it can store a Personal Identification Number (PIN) and can only be processed if the customer enters the PIN correctly at the ATM or EDC machine.


2. Difficult to Duplicate


Chip-based ATM cards are also difficult to duplicate because the data stored on the chip can only be verified for authenticity by offline and online CAM (Card Authentication Method) methods which are more secure. Meanwhile, data on magnetic stripe-based ATM cards are easier to duplicate because it stored on magnetic tapes that do not have PIN protection.


3. Has a Larger Data Storage Capacity


Chip-based ATM cards also have a larger data storage capacity when compared to magnetic stripe-based ATM cards. It is because the chip embedded in it has CPU, memory, operating system, applications, and cryptographic functions that can also affect the transaction speed.


4. Can Transact with a bigger nominal


Chip-based ATM card owners can make transactions with a bigger nominal compared to magnetic stripe-based ATM card owners. Bank Indonesia has raised the limit for cash withdrawals via ATMs for chip-based card holders, from a maximum of IDR 10 million per day to IDR 15 million per day. Meanwhile, interbank transfers rose to IDR 50 million per day from a maximum of IDR 25 million per day. The limit is adjusted to the type of card and the policy from the bank that issued the card.


5. Stronger Physical Card


The physical chip-based ATM card also has better strength when compared to the physical magnetic stripe-based ATM card. It needs stronger protection because they need to protect the chip technology, which has CPU and memory embedded in the card.


Stay Alert When Doing Transactions


The purpose of replacing chip-based ATM cards is to increase security when transacting. However, the way someone commits a crime to enrich themselves will also continue to develop along with technology development.

For example, a recent fraud mode that asks the customer to replace the card through a telephone connection or via chat on behalf of a particular bank. Therefore, it is necessary to be a sharp customer and be aware of crimes that could occur.

The steps can start from getting used to changing PINs regularly, getting used to transact in crowded places, and consistently checking mutations regularly, so we can immediately find out if there are suspicious transactions.

Jalin Increases the Digital Transactions Security Through HSM Updates

Jalin Increases the Digital Transactions Security Through HSM Updates

PT Jalin Pembayaran Nusantara (Jalin) updated the Hardware Security Module (HSM) marked by the ‘Key Ceremony of Custodian Local Master Key (LMK)’ activity, Thursday (22/07). Held at the Jalin Data Center in Tangerang, the HSM update aims to improve the security of digital transactions for Jalin’s customers using qualified modules according to security standards set by the regulator.

Basically, HSM is a data security module that serves to protect customers from leakage of sensitive/critical data that has the potential to be misused by irresponsible parties. Customer sensitive data will be encrypted/encoded so that it cannot be read/opened by any party from a payment system.

In supporting its digital innovation for financial services, Jalin constantly uses HSM devices that also comply with world security standards, namely Level 3 of FIPS 140-2, PCI HSM v3, and PCI HSM v3 KLDm AusPayNet. The HSM used supports high-level algorithms, hence helping to ensure the security of member bank’s card issuance. The use of key blocks in accordance with the PCI-DSS PIN Security Requirements and VISA Security Requirements has also been implemented.

Collaborating with PT Dymar Jaya Indonesia as the third party of HSM modules provider, the Key Ceremony was attended by three key custodians appointed by Jalin to ensure the confidentiality and credibility of the key installation process. In addition, the entire activities complied with procedures and high security standards to ensure data protection for Jalin service users. Covid-19 health protocols were also strictly implemented.

In the future, HSM functions and features will always be updated according to the times. It is in line with Jalin’s commitment to support Indonesia’s payment system infrastructure that is reliable, modern and innovative. Hence creating the service system that is secure and convenient to support people’s digital payment transaction activities.

Jalin CSR: Danareksa Group Synergy in Welcoming Eid Al-Adha 1442 H

Jalin CSR: Danareksa Group Synergy in Welcoming Eid Al-Adha 1442 H

Every year, PT Jalin Pembayaran Nusantara (JALIN) participates in sacrificial activities to celebrate Eid al-Adha and spread kindness with others through the Jalin CSR program: Jalin Patungan Kurban. Welcoming Eid al-Adha 1442 Hijri, which falls on July 20, 2021, this year, Jalin not only collaborated with BAZNAS but also synergized with Danareksa Group to distribute sacrificial animals to people in need.

Jalin’s sacrificial activity is an annual activity that is carried out as part of Jalin’s mission to make positive impacts on the community. From Jalin Patungan Kurban 2021 program this time, Jalin managed to distribute 1 “Berkah” cow (301-350kg) and 1 “Manfaat” goat (28-30kg) as sacrificial animals where funds were collected from Jalin employees (Jaliners).

In addition, this year, Jalin also synergized with Danareksa Group to distribute sacrificial animals to people in need through the 2021 Danareksa Qurban Donation program. Not only PT Danareksa (Persero), a lot of its subsidiaries also participated this year, consisting of PT Jalin Pembayaran Nusantara, PT Danareksa Investment Management, PT Danareksa Finance, and PT Danareksa Capital. Through the 2021 Danareksa Qurban Donation program, Danareksa Group donated sacrificial animals with a total of 4 “Berkah” cows (301-350kg) and 3 “Berkah” goats (25-27kg).

VP Corporate Secretary Christianus K. Panjisasongko said, “Alhamdulillah, this year Jalin was able to share kindness through sacrificial activity (qurban). We hope this can help ease the burden of our brothers and sisters who are facing difficulties in getting foods, especially amid this prolonged pandemic. Hopefully, this sacrificial activity that is a result from the synergy between Danareksa Group and Jaliners will bring blessings to all of us.”

In the implementation of slaughtering sacrificial animals, both slaughtering and distribution are carried out by following strict health protocols according to government regulations, coordinated by BAZNAS. The location of the sacrificial slaughter was carried out at the Bogor BAZNAS Livestock Center, Cimande Hilir Village, Caringin District, Bogor Regency, West Java. Meanwhile, the result of the sacrificial animals was distributed to underprivileged communities in the BAZNAS Assisted Village for the Jabodetabek area.


QRIS Cross Border, Cross Country Shopping Just Use QRIS

QRIS Cross Border, Cross Country Shopping Just Use QRIS

Bank Indonesia (BI) has obliged the use of the Quick Response Code Indonesian Standard (QRIS) for all Payment System Service Providers (PJSP) since January 1, 2020. Currently, there are already 60 PJSPs QRIS partners and 6.55 million registered merchants using QRIS. However, the expansion of QRIS services is not limited to being able to be used domestically. Bank Indonesia and the Indonesian Payment System Association (ASPI) have a strategic plan so that the QRIS Cross Border service can start running in 2021.

QRIS Cross Border is one of the collaborative initiatives to build standardization of settlement infrastructure for cross-border trade, remittances, retail payment systems, and capital markets. That way, Indonesian people will be able to make payments abroad by simply scanning the QRIS code. It applied to foreign tourists who travel to Indonesia too. Later, they can make payments by scanning the QRIS code through the application they usually use in their country and already supports QRIS.

The presence of the QRIS Cross Border is also following the points contained in the ASEAN Economic Blueprint 2025, one of which is about improving and standardizing the payment system. Therefore, the QRIS Cross Border initiative can provide a positive impact on the implementation of a regional payment system that is safe, efficient, and competitive.

In practice, there are five things as the primary guide for this QRIS Cross Border successful implementation. The five guidelines are:

  • Promote ASEAN Payments Connectivity and regional linkages of payment systems through open infrastructure and retail payments interconnection.
  • The form of multilateral implementation with various countries.
  • Promoting financial inclusion, tourism, and digital economy (SME) inclusion
  • Legal and regulatory compliance in both jurisdictions
  • Maximizing the local currency settlement model

Currently, the government has signed an MoU with the Bank of Thailand and Bank Negara Malaysia for the implementation of payments through the QRIS Cross Border. However, QRIS Cross Border may also be able to be used in countries other than Thailand and Malaysia because there are plans to expand cooperation with several other countries in Asia.

The cooperation model that will be implemented is Switching to Switching. This means that each GPN switching will be connected to the destination country switching by using API and standard messaging in the integration process. Then, Settlement will be carried out using the LCS (Local Currency Settlement) method through ACCD (Appointed Cross Currency Dealer) Bank.

Bank Indonesia and ASPI have also adopted the international standard EMV Co in the process of preparing the QRIS. Using the standard of EMV Co, which is open source, wider interconnection of payment system instruments can be realized so that interoperability between providers, and countries becomes easier.