Cars pass through automatic toll gates utilizing e-cards in Meruya, Jakarta, Sunday (17/9). The government is targeting the implementation of non-cash payment systems on all toll roads by the end of October.
JAKARTA, KOMPAS — Bank Indonesia (BI) is planning to issue a regulation on the fees to refill electronic money amid the National Non-cash Movement. The plan has pros and cons. On one side, the plan is contradictory to the national non-cash movement and burdensome to the people. On the other hand, the banks and the providers of e-money refill services need it.
Institute for Development of Economics and Finance economist Bhima Yudhistira Adhinegara said e-money refills must not be charged, however low the fee is. “That would be a disincentive for people to use and refill e-money,” Bhima said on Sunday (17/9) in Jakarta.
“The banks can get money to finance the issuance of e-money cards and the maintenance of the devices from the sale of the e-money. In the future, we can regulate the use of the e-money as a third party fund. Regarding the providers of e-money refill services, there should be shared costs between the banks [which issue the e-money] and the merchants that are also banking entities, not the consumers,” Bhima said.
If the maintenance cost is too high, the government can facilitate the establishment of an independent business entity, such as the management of the Octopus card in Hong Kong.
The regulation to be issued by BI is designed to increase and expand the availability of non-cash infrastructure and its maintenance to make the business sustainable.
BI communications department executive director Agusman said it would be better to await the regulation from BI. If the regulation is there, it will be easier to explain it in detail.
BI data shows that as of July 2017 there were 69.4 million e-money cards with a transaction value of Rp 1.14 trillion. In August 2016, there were 43 million e-money cards with a transaction value of Rp 616 billion.
PT Bank Mandiri senior vice president of transactions for banking retail sales Thomas Wahyudi said banks had not got any profits from the issuance and transaction of electronic money. This is because the investment for the system and the production, distribution and maintenance of the cards was expensive.
The electronic money at the bank cannot be channeled for credit. According to BI regulations, electronic money is a prepaid card, which is in the category of immediate obligations, not third party funds “At present, there are no refill fees for using a banking facility. However, the electronic money refill by a third party will be charged Rp 1,000 for each refill. The money does not go to the electronic money issuer, but to the third party,” he said.
Educate the users
PT Transjakarta president director Budi Kaliwono said Transjakarta had imposed refill fees of Rp 2,000 since January 2017. The fees were targeted at users who refill the card using cash. The purpose was not to collect money but to educate consumers to refill with non-cash.
Association of Indonesian Retailers (Aprindo) deputy chairman Tutum Rahanta said the refill fees were needed. However, some issues need consideration such as the nominal amount and its implementation by the entity outside the issuer of the electronic money.
Bus and truck drivers who use toll-roads in East Java oppose non-cash payments and the refill fees for the electronic money cards.
“I always pay the toll-road with cash although I have to queue up. Using electronic money is too complicated. Not all places provide electronic money refill services. Not to mention the refill fees,” said Suparno, a truck driver from Surabaya.
