Global Payments Week

September 21, 2016

Turin, Italy

Greenback 2.0 Lombok

Objective of Greenback 2.0 in Indonesia

Encourage the development of a transparent and efficient remittance market

Increasing the awareness of migrant workers (international as well as domestic) and their families on the existence and benefits of regulated financial services.

Migrant workers and their families will have better information and access to available financial services, and ultimately contributing to the improvement of their welfare. (Influencing behaviors in two GB JB and Lotim)

Providing a platform of Greenback 2.0 where other partners can also implement initiatives that are complementary. (e.g. government payments, digital village, single window migration support, etc)

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BE

NG

KU

LU

KA

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The number of Indonesian migrant workers originating from NTB/Lotim is very high

NTB is the third largest province where IOMWs originated from

-

5,000

10,000

15,000

20,000

25,000

30,000

LOM

BO

K T

IMU

RIN

DR

AM

AYU

LOM

BO

K T

ENG

AH

CIR

EBO

N (

KA

B)

CIL

AC

AP

KEN

DA

LSU

BA

NG

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BO

K B

AR

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LAM

PU

NG

TIM

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PO

NO

RO

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CIA

NJU

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GA

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BA

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AR

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BA

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MA

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MI (

KA

B)

MA

JALE

NG

KA

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SUM

BA

WA

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GR

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AN

Lotim is the largest regency/city where IOMWs originated from; around 50% of NTB’s IOMWs came

from Lotim

Why Lombok Timur? (1)

Source: BNP2TKI, Jan-Des 2015

97.7% 2.3%

The majority of Indonesian migrants from NTB and Lotim work in the

Malaysian Peninsula

Mataram

0%

Lombok Barat

11%

Lombok Tengah

20%

Lombok Timur

64%

Sumbawa

1%

Bima

2%

Lombok Utara

2%Lainnya

0%

MALAYSIAN PENINSULA (N=36,607)

Lombok Barat

6%

Lombok

Tengah

14%

Lombok Timur

31%

Sumbawa

2%

Bima

47%

EAST MALAYSIA (N=257)

More than half of NTB’s IOMWs who work in the Malaysian Peninsula originated from Lotim, the majority are men

Source: BP3TKI Mataram, 2014

Why Lombok Timur? (2)

• Encouraging the use of regulated channel (remittances, payments, savings and loans)

• Providing remittance services that are more accessible and convenient

• Enhancing IOMW’s capability in making financial decisions that are more responsible

Kota Mataram,

Lobar, KLU, 173912697

Kab. Loteng, 4071600

Kab. Lotim, 1981098

Kab. Sumbawa, 101700921

Kab. Bima, 48026682

Kab. Dompu, 2574042

Remittances by Districts (IDR, 2014)

There is still room to increase remittance flows through regulated channels to Lotim

Activities in Project Greenback will raise awareness of IOMWs and their families on the benefits of using regulated channels in sending, receiving and utilizing remittances, as well as encourage remittance service providers to improve the accessibility of their services in IOMW’s origin in

Lotim

Source: BI, 2014

Why Lombok Timur? (3)

Video is available @ worldbank.org/ID and youtube.com/worldbank

PKH, KIS, Raskin, BSM

Dominant XL, Telkomsel Dominant XL, Telkomsel Dominant XL

Majority cashMostly cash; electricity

MKiosBPJS thru agent, electricity

Mkios, other cash basis

PKH, Raskin, KIS PKH, Raskin

< 5 30-40 < 10

25 40 50

Account mediators Account mediators Account mediators

Only agent Neighbour village Neighbour village

2,531 1,898 1,350No. of HHs

% MWs

% Banked

Remit Channel

Social Assistance

Financial Services

Network

Payment Method

Desa Perigi, Kec. Suela

Desa Loyok, Kec. Sikur

Desa Tetebatu Selatan, Kec. Sikur

Profiles of Greenback 2.0 villages in Lotim

8

Greenback 2.0 Lombok Timur

Baseline

• Need assessment

• Baseline survey

Activities

Intervention

• Infrastructure: introduce access point in Lotim

• Financial education program: financial management, types of financial products/services available, benefit of using regulated channels

Progress Tracking

• Monitoring

• Final assessment

• Lesson learned

Terima kasih banyakGrazie mille