JAKARTA (Yosefardi) – Central bank Bank Indonesia mulls to tighten regulation on remittance business in attempt to protect the interest of customers.
This regulation is set on BI’s circular letter No 15/23/DASP year 2013 regarding fund/money transfer (remittance) implemented this year.
The government will require a minimum capital for remittance business as effort to increase BI’s control on the company engaged in remittance business.
BI will also require a compensation paid by the company to its customers. “One significant issue is the company is required to submit business plan for one year ahead and BI has right to make an evaluation on that business plan.
Under previous regulation, the company engaged in remittance business was only required to report the opening of branches and joint operation contracts with other operators.
Senior Manager for Business Development Diaspora and New Product of Western Union, Donny Erfan, said Western Union will continue expand its network in Indonesia while to comply with the regulator’s regulation.