LinkAja E-money Service Officially Launches, Available for Cross-Country Transaction

After being delayed for several months, LinkAja officially launched on Sunday (6/30). Participated also in the event, the Vice President of Republic Indonesia Jusuf Kalla, BUMN Minister Rini Soemarno, and Minister of Communication and Information Rudiantara at Gelora Bung Karno, Jakarta.

In his remarks, LinkAja's CEO, Danu Wicaksana said that the product has created opportunities to improve the low rate of financial inclusion services in Indonesia. As of 2018, 76 percent of transactions in the country are still in cash.

LinkAja should be the national development agent in helping the government to improve Indonesia's financial inclusion to 75 percent by the end of this year.

In this event, Wicaksana helped introduce LinkAja's newest feature, the cross-country transaction. Currently, it's only available in Singapore and having collaboration with Singtel telecommunications operators.

"There are two things related to LinkAja cross-country service. First, remittances from abroad. Second, cross-country merchant payments using the app," he said to DailySocial.

Regarding remittance services, the company claimed to be the only e-money that provides it from Indonesia's Migrant Workers (PMI) in Singapore.

He said no further details on the expansion strategy. However, LinkAja has good potential in acquiring the international market, particularly for Telkom remittance and Telkomsel users working abroad, also Indonesia's Migrant Workers.

Another new feature is drawing money using smartphones. It allows users to draw money without debit card at more than 40 thousand ATM Link outlets of the red-plate banks.

As the previous information, LinkAja is a transformation from Telkomsel's Tcash. The QR Code-based service has been announced since February and available since early March.

LinkAja was managed by PT Fintek Karya Nusantara or Finarya as the joint venture of four state-owned banks (Mandiri, BNI, BRI, and BTN), Telkomsel, Pertamina, Jasa Marga, and Jiwasraya. It's a strategy against Go-Pay and OVO domination in the e-money market.

Currently, LinkAja has acquired 22 million users. In terms of the partnership, they've worked with more than 15,000 merchants, 400 payments, and  20 e-commerce in Indonesia. In addition, there's also Cash in Cash Out (CICO) in over 100 thousand spots.

"We're focused on the public's essential affairs. One is to digitize SPBU with Pertamina, cashless payment for tolls with Jasa Marga, and digital payment for all public transportations like trains," he said.

–Original article is in Indonesian, translated by Kristin Siagian