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Pohung GrandiosVice President

The Role of Bank as Cash Point

One Heart One Mandiri

Jakarta, 27 September 2017

22

Agenda

Background

Background

Overview Bank Mandiri as Cash Point

Bank Mandiri Role as Cash Point

Cash Point Advantages

Conclusion

Cash Point Activities

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Background

As an archipelago country which has

more than 17,500 islands with more

than 260 millions life, cash is still

popular used as payment system in

Indonesia.

However, due to the limited

infrastructure, cash distribution to

some remote areas become the main

challenge in Indonesia.

Indonesia

As the central bank, Bank Indonesia

has responsibility to fulfill the need

of cash throughout the country.

In order to bring that service to

remote areas, Bank Indonesia has

implemented Cash Point service

through banks in some locations.

Bank Indonesia

As the biggest bank in Indonesia

which has :

• Asset IDR 1,067 Trillion

• 17,461 ATM

• 2,611 branches

Bank Mandiri is actively involved in

financial inclusion mainly in cash

distribution as a Cash Point of Bank

Indonesia.

Bank Mandiri

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Overview Bank Mandiri as Cash Point

Gorontalo

Tanjung Pinang

Tanjung Pandan

Singaraja

Tolitoli

Tahuna

Sorong Biak

Timika

Rantauprapat

JayapuraManado

Palu

Denpasar

PematangSiantar

Batam

Palembang

Cash Point10 Locations

Member4 - 19 Banks

Cash in SafeIDR 100 - 350 Bio

Long

Square

Short

Gorontalo

Biak & Singaraja

7 Other Locations

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Bank Mandiri Role as Cash Point

Cash Withdrawal

Cash Exchange Service

Cash Distribution

Cash Storage

Cash Processing

Cash Liquidity

Distributing fit banknotes/coins for circulation

Providing services for local society to exchange cash with expected denomination banknotes/coins

Analyzing cash supply and demand to ensure the stock is sufficient

Withdrawing unfit banknotes/coins from circulation

Processing cash to separate and package fit and unfit banknotes/coins

Saving cash in vault for future needs or for Bank Indonesia pick up preparation

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Cash Point Activities

Cash Distribution & Withdrawal

• Members send a cash deposit or withdrawal request to Cash Point at the day before transaction• Cash Point approves that requests based on stocks & vault capacity• For those who want to deposit cash have to process it first in order to separate and package the fit

and unfit banknotes/coins based on Bank Indonesia standard• The fit banknotes/coins will be circulated to the members which need it in the future• The unfit banknotes/coins will be stored in the vault and picked up by Bank Indonesia• Members do the transactions at Cash Point based on its approval

Deposit Request

Bank Long Position

Withdrawal Request

Bank ShortPosition

Cash Point

BI-SILKEmail/FaxMail/Telp

Day - 1

Approval

Bank Long Position

Bank ShortPosition

Cash Point

Cash Deposit

Cash Withdrawal

Day + 0

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Cash Point Activities

Cash Liquidity

• Cash Point analyzes the need of cash, vault capacity, and cash limit for next 1 - 2 weeks• Cash Point sends a cash pick up request to Bank Indonesia if it will be over capacity• Cash Point sends a cash delivery request to Bank Indonesia if it will be lacked• Bank Indonesia approves that requests based on stocks• At the transaction day, Bank Indonesia will deliver or pick up the cash based on approval

Sending Cash Pick Up / Delivery Request

Week - 1 Transaction Day

Cash Analyzing

Approving Request

Cash Delivery

Cash Pick Up

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Cash Point Activities

Cash StorageAll banknotes and coins of Cash Point are saved separately in the vault of Bank Mandiri branch

Cash Processing

Cash is processed in order to separate the fit and unfit

banknotes/coins by using processing machine and manually

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Cash Point Advantages

Risk Control and Cost Efficiency for Banks

Fulfilling Society

Banknotes Demand

Maintaining Indonesia

Sovereignty

Improving Local Economy Activity

1010

Conclusion

Cash Point in banks could help Bank Indonesia

managing cash circulation at remote area

Cash Point should be improved and implemented

throughout all remote area in Indonesia

Cash Point brings some benefits for banks and

nation

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Thank youIndonesia’s Best, ASEAN’s Prominent