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Jakarta Post

City aims for cashless transactions by 2016

In an attempt to prevent corruption and illegal levies, the Jakarta administration plans to make all transactions in the city non-cash by 2016

The Jakarta Post
Mon, September 15, 2014

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City aims for cashless transactions by 2016

I

n an attempt to prevent corruption and illegal levies, the Jakarta administration plans to make all transactions in the city non-cash by 2016.

The plan is part of the National Non-Cash Movement (GNNT) launched by Bank Indonesia (BI) earlier this year. Not only will the movement prevent corruption and illegal levies but it will also make transactions safer, more efficient and simpler for consumers.

Jakarta Deputy Governor Basuki '€œAhok'€ Tjahaja Purnama said the city would begin implementing changes in day-to-day activities.

'€œFor example, we are starting with daily activities such as making train or Transjakarta ticket purchases. All train passengers already carry out cashless transactions. Next year, we are targeting the same thing for Transjakarta,'€ Ahok told reporters after a meeting with state-owned lender Bank Mandiri at Plaza Mandiri in South Jakarta recently.

Ahok said that gradually, cashless transactions would be required for toll road and tax payments, among others.

'€œWe want to familiarize Jakartans with cashless transactions. That'€™s why we'€™re starting with daily activities like commuting,'€ he said.

Ahok cited that the city administration'€™s new street vendor system was also part of the plan to shift to cashless transactions.

Under the system, the city administration would register all vendors and assign them to designated areas as well as give them banking access.

Each vendor would be given a dual-purpose ATM debit card '€” issued by city-owned lender Bank DKI '€” that would also function as a street vendor ID card, containing the vendor'€™s name, its products and assigned location.

The vendors must pay a small fee to operate. The cost would be automatically charged to the cards each day.

The new system was proposed to prevent thugs from extorting and collecting illegal levies from the vendors.

'€œIn 2015, we will start shifting to cashless transactions. Hopefully by 2016 Jakarta can be cashless,'€ he said.

Ahok concluded that cashless transactions were not only beneficial for consumers but also for the banks.

Separately, Bank Mandiri senior executive vice president of transaction banking Rico Usthavia Frans said that the bank was prepared and committed to actualizing a cashless Jakarta by 2016.

'€œPak Ahok asked us to gear up for the cashless movement. We fully support the idea and we will do our best to fulfill it,'€ Frans said.

He said that currently, one of the bank'€™s main focuses was providing e-Toll cards for its consumers. Therefore, Bank Mandiri customers can pay tolls using their debit or e-Money card.

Ahok said he hoped other banks would follow suit.

'€œWe appreciate Bank Mandiri'€™s understanding and we hope that all banks will follow its example,'€ he said.

'€” JP/Dewanti A. Wardhani

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