BRI and BNI distribute student aid funds

YOGYAKARTA. Amid the demands for reducing the credit interest rate, State Owned Enterprises (SOEs) banks are lucky to obtain low cost liquidity. Recently, two SOEs banks, namely PT Bank Rakyat Indonesia Tbk (BRI) and PT Bank Negara Indonesia Tbk (BNI) were appointed to channel student aid funds.

Under the assignment, BRI and BNI become the distributor of the aids under the scheme of Smart Indonesia Program (PIP). The aid funds from government flow to banks liquidity through Smart Indonesia Card (KIP) Plus.

According to the website of National Team for Acceleration of Poverty Eradication (TNP2K), along this year the number of aid funds that are allocated through KIP amounted to IDR11.56 trillion for 19.54 million of students. BRI itself received the biggest portions of the student aid liquidity.

BRI channels the student aid funds through the KIP Plus. “BRI targets to distribute around 15 million cards for the students of elementary school, junior high school, and vocational high school” said Director of Institutional Affairs of BRI Kuswiyoto on Wednesday (19/10).

BRI and Ministry of Education and Cultural Affairs (Kemendikbud) conducted launching of KIP at Public Vocational School No 2 (SMK Negeri 2) Yogyakarta and Public Junior High School No 6 (SMP Negeri 6) Yogyakarta.

Yogyakarta was selected as the host for the pilot project of KIP Plus launching. KIP Plus has three functions as debit card, ATM card, and e-wallet. The students can also use KIP Plus for buying school supplies at school merchant or cooperative that utilize the EDC machine of BRI.

As an information, a junior high school student will receive an IDR375,000 of funds in every semester, while a vocational school student will receive IDR500,000-IDR1 million of aid funds per a semeter. All the aid funds are transferred to KIP Plus.

Kuswiyoto added that the recipients of KIP Plus are the potential customers of BRI, since the student may use KIP Plus as a saving instrument.

Meanwhile, Director of Consumer Banking of BNI Eko Cahyo said that the students may use KIP Pluse to access the account in Student Savings (SimPel), as well as e-wallet account.

Aside of obtaining additional low cost liquidity, the channeling of student aid also helps the banks to boost their electronic money (e-money) business.

SOEs banks also benefit from the channeling of the non-cash aid of Hope Family Program (PKH). Government plans to allocate a worth of IDR21 trillion of the PKH to 300 cities.

(Muhammad Farid/Translator)