The Jakarta Post
With the establishment of the National Payment Gateway (GPN) program, Bank Indonesia is set to cut transaction fees for social transfers.
BI Governor Agus Martowardojo said on Monday that social transfers, such as for subsidies, charged a normal rate of Rp 6,500 (48 US cents) per transaction.
"As the social transfers will be cashless, there will be a lot of bank transactions in the future. The transfers will be free of charge. We will use the cross subsidy system," he said during the GPN launching at Bank Indonesia in Jakarta.
He added that, to deliver subsidies like rice and fertilizers, the government paid transfer costs at between Rp 9,000 and Rp 13,000 per person.
Finance Minister Sri Mulyani Indrawati said that, next year, the government budget would be Rp 2.22 quadrillion, with one third of the budget set to be allocated for social assistance through bank transfers.
"The banks do not have to charge me and the money could be used for more people who need the subsidy," she said. (bbn)