Aldira Sunrise 5 Mei 2024

Financial: Banks will charge cash withdrawal fees on EDCs to increase revenue
Some banks plan to boost revenue from electronic data capture (EDC) services by imposing fees for cash withdrawals. Kontan newspaper reported that Bank Central Asia (BBCA) plans to impose a fee of IDR 4,000 for cash withdrawal transactions via EDC at retail merchants starting July 5. BBCA’s management stated that the fee is only for cash withdrawal transactions to improve service quality. However, other banks have not yet planned to follow BCA’s strategy. BBNI said that they will not be hasty in implementing fees for cash withdrawals on EDC machines. (Kontan)
What we think: Some cash withdrawal services via EDC are offered by convenience stores such as Alfamart and Indomart, which also aim to reduce their daily cash holding. BBCA plans to charge the fee, which may lower the transactions at the convenience stores. The impact on BBCA’s non-interest revenue should be minimal if other banks do not follow the strategy, and it may negatively affect BBCA’s transaction banking franchise.
ERAL plans to open 50 new stores this year
Sinar Eka Selaras (ERAL) or Erajaya Active Lifestyle targets to open 40-50 new stores from various categories. ERAL has prepared a capex of IDR 140B for this year for new store additions. Apart from this, adding new brands and new product categories is also one of the focuses for ERAL this year. This year, the company will focus on the development of its private labels, namely IT, Loops, and Lamina, which have good opportunities in the Indonesian market. (Kontan)
What we think: By the end of 2023, the ERAL retail network have reached 116 outlets. So far this year, ERAL has opened 18 stores covering the Smart, Active, and Lifestyle categories.