Danamon Forms Partnership with BCA and Rintis to Issue Electronic Money and Develop the Supporting Infrastructure

Issuance of Card-Based Electronic Money with the Support of the PRIMA Network; Providing Convenience in Non-Cash Transactions


Jakarta, 19 August 2015. PT Bank Danamon Indonesia, Tbk. ("Danamon") today signed Memorandum of Understanding (MoU) with PT Bank Central Asia, Tbk. ("BCA") and PT Rintis Sejahtera ("Rintis) on Flazz prepaid card co-branding and the development of its supporting infrastructure. The partnership between Danamon and BCA covers the issuance of BCA's multipurpose prepaid card, Flazz, by Danamon. While, the partnership between Danamon and Rintis, as the institution that manages the PRIMA network, covers the development of the balance top-up infrastructure for the Flazz card through Danamon's network.

"Through these partnerships, Danamon's customer will be able to benefit from the speed and convenience of transaction that electronic money can provide, showing our continuous efforts to bring better values to our customers," said Sng Seow Wah, President Director, Danamon.

This collaboration is expected to not only benefit the customers of Danamon and BCA, but also as concrete commitments of both banks to support the government's National Cashless Society Movement, which aims to promote cashless methods of transactions. "With Flazz, Danamon's customers can conduct transactions in a more practical, efficient, and secured way. In addition, with Danamon's Flazz card, customers can perform transactions in all of Flazz's merchants and enjoy all of the programs and special offers that are exclusive to Flazz's users," said BCA President Director, Jahja Setiaatmadja.

The rapid progress of technology in Indonesia triggered an increase in electronic money usage. Based on Bank Indonesia's data on electronic money usage, in 2014, electronic money transactions amounted to 203 million transactions valued at IDR 3.3 trillion. In 2015, the figure is expected to increase to 450 million transactions with a value of IDR 4 trillion.

Card-based electronic money in Indonesia is generally used for everyday transactions such as grocery shopping, Transjakarta bus fare payment, Commuter train tickets, and other merchants. With card-based electronic money like Flazz, the public can conveniently conduct transactions, without the need to carry cash, and merchants do not need to prepare cash for changes.


Flazz card holders can perform transactions anywhere and anytime with more than 70,000 merchant outlets that feature the Flazz logo in 22 cities in Indonesia. Flazz balance top-up can be done in all of BCA's noncash ATMs, BCA branches, Flazz stands, Flazz Top Up Centers, and Flazz merchants with the top up logo. Additionally, cash top up can be conducted through all of the Alfa Group merchants (Alfamart, Alfa Midi, Alfa Express & Lawson) as well as in Gramedia bookstores and Es Teler 77. "Flazz is an electronic money product issued by BCA to provide convenience and special offers to customers and the general Indonesian public. The convenience and special offers provided by Flazz will undoubtedly give added values to Danamon's customers," added Jahja.

To support the usage of electronic money, an accessible and convenient top up infrastructure is needed, thereby allowing users to benefit from cashless transactions. As such, Danamon also formed a partnership with Rintis, as the institution that manage the PRIMA network, which will assist in developing the top up infrastructure for banks that collaborate in the issuance of Flazz electronic money. The development of this infrastructure will allow Flazz card holders to top up their balances through Danamon's network.

PT Rintis Sejahtera President Director, Iwan Setiawan, said, "This MoU signing represents strategic partnerships among all the parties involved, especially Rintis as the local switching institution to support Bank Indonesia's policy in developing an efficient payment system through electronic money transaction. As an infrastructure provider, we are fully committed to provide a trusted and robust network to provide convenience for customers in performing transactions and electronic top up."

Going forward, Rintis and Danamon will collaborate in electronic transaction service through the PRIMA ATM network, which is accessible from more than 88,000 ATMs across Indonesia.

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About PT Bank Central Asia Tbk (as of 30 June 2015)
PT Bank Central Asia Tbk (BCA) is one of the most prominent banks in Indonesia that focuses on transaction banking, lending, and financial solution to the corporate, commercial & SME, and consumer segments. As of the end of June 2015, BCA facilitates banking transactions to 13 million accounts through 1,135 branches, 16,707 ATMs and hundreds of thousands EDS, supported by internet and mobile banking services.

About Flazz (as of 30 June 2015)
Flazz is an electronic money product issued by PT Bank Central Asia, Tbk to provide convenience and ease-of-use for customers and Indonesian public in performing transactions. Card holders can conduct transactions anywhere and anytime with Flazz card in 70,000 merchants that feature the Flazz logo in 22 cities in Indonesia. As of June 2015, there are 7.7 million Flazz cards in circulation with 46 million in payment transaction in the first semester of 2015. Flazz balance top-up can be done in all of BCA's noncash ATMs, BCA branches, Flazz stands, Flazz Top Up Centers, and Flazz merchants with the top up logo. Additionally, cash top up can be conducted through all of the Alfa Group merchants (Alfamart, Alfa Midi, Alfa Express & Lawson) as well as in Gramedia bookstores and Es Teler 77.

About Danamon
PT Bank Danamon Indonesia, Tbk. ('Danamon') was established in 1956 and as of June 30, 2015 operates a network of 2,074 including among others conventional branches, Danamon Simpan Pinjam (DSP) and Syariah units as well as its subsidiaries branches. As of June 30, 2015, Danamon provides its customers with close to 66,000 ATMs, including through its association with ATM Bersama and ALTO, in all 34 provinces in Indonesia. Danamon manages around IDR 200 trillion in assets as of June 2015.

Danamon was recently awarded as 1st Winner of the Annual Report Award (ARA) 2013 in the Private Financial Listed category, which was issued by Bank Indonesia, the Financial Services Authority (OJK), the Indonesian Stock Exchange (IDX), the Tax Directorate General, the Ministry of State Owned Enterprises, the National Committee for Governance Policy, and the Indonesian Accountant Association. Danamon also recently received the Customer Satisfaction Award 2014 - Consumer Bank of the Year by Roy Morgan. Internationally, Danamon was awarded as Asia's Best Company 2015 - Best Managed Company (Indonesia, ranked 8th) by Finance Asia.

Danamon is also the sole license holder of Manchester United cards in Indonesia, allowing the Bank to issue Manchester United ATM/Debit cards and credit cards.

PT Adira Dinamika Multi Finance, Tbk. (Adira Finance), the automotive financing subsidiary of Danamon, operates an extensive branch network in more than 260 cities in Indonesia. Danamon is also the majority owner of PT Asuransi Adira Dinamika (Adira Insurance), a general insurance company and PT Adira Quantum Multifinance (Adira Kredit), a durable goods financing company.

As of June 30, 2015, Danamon was 67.37% owned by Asia Financial (Indonesia) Pte. Ltd., 6.83% by JPMCB-Franklin Templeton Investment Funds and 25.80% by the Public.

For further information regarding Danamon, please visit Danamon's corporate website at: www.danamon.co.id.

About PT Rintis Sejahtera
ATM PRIMA network is an ATM/Debit switching service managed by PT RIntis Sejahtera and has been in operation since August 2000. The ATM PRIMA network is now composed of 58 banks and spans more than 88,000 ATMs with PRIMA logo. In the near future, there will be four additional banks that will be connected to the ATM PRIMA network, where Danamon is one of these banks.

The PRIMA network provides the PRIMA Debit service to make shopping more convenient for members of the PRIMA Debit network in more than 370,000 EDC terminals in merchants that feature the PRIMA Debit/Debit BCA logo. The PRIMA network is also supported with an efficient and effective web-based complaint handling system.

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