BRI, AirAsia to take advantage of SE Asia travel potential

Lending Bank Rakyat Indonesia (BRI) is using the capacity of more Indonesians circumnavigating Southeast Asia with a current partnership with the area s largest budget provider, AirAsia.

Travelers of Indonesia AirAsia will have the ability to spend for their air travels using the lots of payment choices offered by BRI, from physical branch workplaces to ATM machines, as well as mobile and internet banking. AirAsia s site will also have its own BRI channel for payment.

Indonesia AirAsia CEO SunuWidyatmoko anticipates the ASEAN Economic Community (AEC) to more boost travelers from smaller sized cities traveling abroad for employment and business. The AEC, which recently came into being although execution is ongoing, will allow for freer motion of people, goods and services in the near future.

We totally support the implementation of the ASEAN Economic Community and we see a big capacity for transportation in the future with the free motion of people, he stated after signing a cooperation arrangement with BRI in Jakarta on Friday.

Indonesia AirAsia brings about 6 million travelers each year, 70 percent of whom travel to international destinations and 30 percent to domestic ones. Sunu said many of the carrier s passengers were Indonesian migrant workers who originate from villages and travel to neighboring countries such as Malaysia and Singapore.

Let me take an example. In East Java, our travelers originate from Tuban, Lamongan and Blitar, not from big cities. BRI is linked even in these smaller sized locations, he said.

Sunu forecasted cashless deals will control payment patterns in the future and consumers have the tendency to prefer debit transactions, BRI s greatest fit, over credit. Currently, payments to Indonesia AirAsia are made 30 percent by debit card, 30 percent by charge card and the staying in cash.

BRI is understood for its micro loans and large network and client base throughout the areas throughout the island chain, be it in cities and little villages.

The lender has 10,612 conventional connections across the nation in addition to its e-channel, which consists of electronic data catch devices, ATM machines and money deposit devices.

AirAsia is strong in the region and we see much capacity in this cooperation, BRI director Sis ApikWijayanto said during the collaboration finalizing event.

BRI can also provide simpler access to the entire AirAsia Group for its 56 million clients, Sis said. A communications satellite, which would be launched later this year, is anticipated to further broaden its network coverage, not only in Indonesia however likewise throughout other nations.

BRI, the most lucrative bank in Indonesia with about 22,000 ATM machines across the nation, spent US$ 200 million to develop the satellite in cooperation with San Francisco-based Space Systems Loral.

The satellite would serve the bank for 17 years, indicating that Bank BRI would be investing $11.8 million a year for the network, a lower figure than if the bank rented a satellite for $37.2 million annually.