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resident Susilo Bambang Yudhoyono has launched the National Savings Movement, introducing savings accounts without administration fees to encourage more Indonesians to save their money in banks.

The President said saving money in banks would boost the country's economic growth.

"Saving money in banks will increase domestic savings, investment will swell and that will boost economic growth and public welfare," Yudhoyono declared Saturday during an event at the Jakarta Fairground in Kemayoran, Central Jakarta.

"This will make us capable of reducing foreign debts, and therefore Insha Allah *God willing*, our economy will grow more independent," he added.

The President said the recent global economic crisis had badly affected some affluent countries partly because the people had the habit of making excessive spendings.

To boost people's interest in saving their money at banks, Bank Indonesia launched at the same event a new product called Tabunganku (My Account), which allows customers to save their money at banks without being charged administration fees.

Tabunganku will be available at 70 commercial banks and 910 rural banks (locally known by the acronym BPR).

The President expressed confidence that the new product would encourage a new savings habit.

"If you want to save money in a conventional or sharia commercial bank you can start with only Rp 20,000 *US$2*," he said.

"And if you want to save money at a BPR or sharia BPR you can start with Rp 10,000 without being charged with any administration fees."

He elaborated by saying that the money saved in banks could be channeled to low-income communities through low-interest loans.

According to data from Bank Indonesia, 80 million of the 135 million Indonesians in the productive age group do not have a bank account.

Yudhoyono said if half of the 80 million people each had Rp 100,000 in savings, the government would have an additional Rp 4 trillion in funds that it could use to support its "pro-people" programs.

Among such programs are the School Operational Aid and low-interest loans for micro-, small- and medium-scale businesses.

"We hope that banks will take part in promoting *Tabunganku* to the wider public," he said.

Acting Bank Indonesia Governor Darmin Nasution said administration fees were one of the factors stopping people from depositing their money in bank accounts.