Rabu, Maret 27, 2019

Government Urged to Introduce Broader Definition of Savings to Include e-Money Funds

According to Bank Indonesia, the use of electronic money (“e-Money”) increased by 66.6% over the course of the last year (January 2018 – January 2019). Furthermore, in January 2019 alone, the overall volume of e-Money transactions undertaken in Indonesia amounted to 274 million separate transactions with an overall value of IDR 5.81 trillion.
However, Destry Damayanti, a member of Board of Commissioners at the Indonesian Deposit Insurance Corporation (“LPS”), explained recently that the increasing use of e-Money has not yet become a threat to banking liquidity due to the fact that e-Money transactions are primarily utilized for short-term transactional purposes and not for long-term savings. In addition, e-Money funds are ultimately still insignificant when compared to savings which are deposited in banks.
Nevertheless, Destry is urging the government to amend the Law No. 24 of 2004 on LPS (“LPS Law”) in order to broaden the definition of savings, as set out under the current LPS Law, so that it also encompasses funds which are held in the form of e-Money. (ANT)

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According to Bank Indonesia, the use of electronic money (“e-Money”) increased by 66.6% over the course of the last year (January 2018 – January 2019). Furthermore, in January 2019 alone, the overall volume of e-Money transactions undertaken in Indonesia amounted to 274 million separate transactions with an overall value of IDR 5.81 trillion.
However, Destry Damayanti, a member of Board of Commissioners at the Indonesian Deposit Insurance Corporation (“LPS”), explained recently that the increasing use of e-Money has not yet become a threat to banking liquidity due to the fact that e-Money transactions are primarily utilized for short-term transactional purposes and not for long-term savings. In addition, e-Money funds are ultimately still insignificant when compared to savings which are deposited in banks.
Nevertheless, Destry is urging the government to amend the Law No. 24 of 2004 on LPS (“LPS Law”) in order to broaden the definition of savings, as set out under the current LPS Law, so that it also encompasses funds which are held in the form of e-Money. (ANT)

......

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