TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Jokowi instructs banks to cut administration fees
Change Size
President Joko Widodo delivers his remarks during a World Savings Day event in Jakarta on Oct. 31. (Courtesy of State Secretary/File)
P
resident Joko "Jokowi" Widodo has instructed banks to cut their monthly administration fees in a bid to increase savings accounts, as the country’s ratio of savings to gross domestic product (GDP) is only 20 percent, far from the ideal level of 32 percent.
"We still have problems with monthly fees. It erodes people’s savings, especially those who have a small amount," Jokowi said during an event to mark World Savings Day in Jakarta on Monday.
According to Financial Services Authority (OJK) chairman Muliaman Hadad, Indonesian banks have set a zero monthly administration fee for student savings accounts, while other depositors were charged a monthly fee of up to Rp 17,000 (US$1.30).
"Banks have various saving products with different administration fees. They need to make the calculation first before making any cuts, but I am sure that our banks are ready for that," he said.
Responding to the President’s call, Bank Tabungan Negara (BTN) president director Maryono said that the bank was considering cutting the administration fee for several savings products, especially for the middle-low segment. (ags)
