Retail Payment Systems
In the OIC Member Countries
54
or chip card) for retail payments. Major credit card brands such as VISA, Master, AMEX,
and Diners are common and widely accepted in Indonesia. Card operations are generally
provided by licensed banks, with VISA, Master and JCB being prominent along with
private-label cards. American Express (AMEX) and Diners operate as non-bank services
under license from the Ministry of Finance. Certain banks also issue proprietary credit
cards. Meanwhile, ATM services were introduced in the early 1990s. Five domestic shared
ATM networks (ALTO, ATM BERSAMA, CAKRA, FLASH and BCA) and two international
shared ATM Networks (CIRRUS and PLUS) operate. ATM cards are used not only for
withdrawals and account balance enquiries, but also to transfer funds to other accounts
within the same bank, paying utilities such as telephone bills, credit card bills, etc. Use of
debit cards at point of sale (EFTPOS) is getting more popular, mainly in big cities. Some
banks are issuing debit cards under the Maestro and Visa Electron programmes. Other
banks are issuing proprietary cards with a current proliferation of terminals at the
merchant site (Bank Indonesia, 2002). With regards to ATM/debit cards, there are 102
banks (85 commercial banks, 8 sharia banks, and 7 rural banks) as issuers and 16
institutions (15 banks and 1 non-bank institution) as acquirer. Twenty banks (19
commercial banks and 1 sharia bank) provide credit cards as issuers, while 12 institutions
(11 commercial banks and 1 non-bank institution) act as acquirers. Meanwhile, 13 e-
money products were launched in the market, of which 6 are provided by banks, 4 by
mobile network operators [MNOs], and 3 by other institutions (Bank Indonesia, 2013). As
of March 2013, there were at least 65,000 ATM machines, 440,000 EDC debit cards,
610,000 EDC credit cards, and 103,000 e-Money readers spread out across Indonesia.
Several banks have small smart card systems operating ATM or PoS.
5. Postal instruments. One particular service of significance with respect to the non-bank
sector is the Giro service offered by Post Office (PT Pos Indonesia). PT Pos Indonesia issues
a ‘Giro Book’ for credit remittances and provides a domestic and international money
order service. Money orders are generally used to remit funds to individual persons who
do not hold any bank account. PT. Pos Indonesia also provides Postal cheque account
facilities to firms and individuals. Cheque accounts are used mostly by public institutions
for collecting various types of tax, government employee payrolls and retirement
provisions, utilities payments, and other individual payment transactions. PT. Pos
Indonesia also issues Postal Traveler’s Cheque.