Four Indonesia state owned bank have formed an Association of State-Owned Banks (HIMBARA) merging their automatic teller machine called (ATM) network, in a move to create or acquire one switching company.
The consolidation, is expected to help cut operational costs of the banks by up to Rp6.8 trillion ($489.21 million) per year. The move is also expected to enhance their competitiveness and efficiency ahead of the ASEAN Economic Community (AEC).
After the merged ATM link, next step, the HIMBARA is looking forward to is creating of its own switching company. The banks, are expecting that the new switching company will be established in first quarter of 2016.
For now, the partnership will allow customers of the four banks to use the ATMs of all the banks without incurring additional charges. The four state banks are PT Bank Rakyat Indonesia Tbk (BBR), PT Bank Mandiri Tbk (BMRI), PT Bank Negara Indonesia Tbk (BBNI) and PT Bank Tabungan Negara Tbk (BBTN) .
State-owned Enterprises Minister Rini Soemarno explained said that the synergies are a part of the ministry’s plan to create a virtual holding between the state banks. “The efficiency, created through the synergy, will be their strength for succeeding in the AEC competition,” she said after the “Link ATM Himbara” launching ceremony in Jakarta.
Meanwhile, HIMBARA chair Asmawi Syam adding, in the first phase there will be 50 Himbara ATMs in Greater Jakarta. Then, are eyeing 800 consolidated ATMs in 2016 displaying HIMBARA’s logo across the country, said Asmawi, who is also BBRI’s CEO.
Chair of the Financial Services Authority (OJK) board of commissioners Muliaman D. Hadad said the synergy was very important since the state-owned banks accounted for 50 per cent of the assets in the banking industry. He expect, National Bank Association (Perbanas) also to follow the HIMBARA programs.
CEO of Bank Mandiri Budi Gunadi Sadikin added, that the new system will cut ATM operational costs for the banks, investment, as well as reduce customers’ transaction cost up to 75 per cent –mean hundred billions rupiah—starting next year.
According to Budi, the switching company could build by the four banks or through acquisition.
Till December, the state banks own 55.804 ATMs across the nation.