Former BPRS supervisory board member Saifuddien Hasan taking an oath virtually before testifying as an expert for the Petitioner at the judicial review hearing of Law No. 21 of 2008 on Sharia Banking, Wednesday (7/27/2022). Photo by Humas MK/Ifa.
Wednesday, July 27, 2022 | 15:58 WIB
JAKARTA, Public Relations—The ban on sharia microcredit banks (BPRSs) in payment traffic has resulted in high fees for their services, which makes them unable to efficiently serve customers, said former BPRS supervisory board member Saifuddien Hasan at the judicial review hearing of Law No. 21 of 2008 on Sharia Banking in the Constitutional Court (MK) on Wednesday, July 27, 2022. The case No. 32/PUU-XX/2022 was filed by PT Bank Pembiayaan Rakyat Syariah Harta Insan Karimah Parahyangan (BPR Syariah HIK Parahyangan), a sharia microcredit bank (BPRS).
“In fact, the Bank of Indonesia has opened payment traffic transaction channels that are designed to be cheaper for the public, such as BI-Fast. However, the irony is that BPRS customers cannot use it directly; they have to go through a third party, which incurs additional fees for each transaction,” he said as an expert for the Petitioner.
Saifuddien said that no BPRS can transfer customer funds in a direct payment traffic scheme. In practice, BPRSs must cooperate with sharia commercial banks. Meanwhile, conventional microcredit banks (BPRs) can directly follow the scheme. “Although it is limited to three BPRs, where BI does not give permission for others due to the current enactment and interpretation of the Banking Law and the Sharia Banking Law,” he explained.
He believes the ban has resulted in BPRS customers not being able to experience transaction-based services, but only those based on profit-sharing margins. Consequently, BPRSs are unable to collect public funds and channel them back to the community in the form of financing or credits.
“The fees will always be expensive. This is certainly detrimental to people in remote areas of Indonesia in the context of obtaining easy and affordable sources of funds for businesses,” he stressed.
Also read: Sharia Microcredit Banks Requests Equality in Payment Financial Traffic Services
Ban on Stock Offers
In addition, Saifuddien added, the provision prohibiting BPRSs from offering their shares to the public has closed the opportunity for it to find more capital, when in fact capital can come from the founders or outsiders. The prohibition has resulted in BPRSs having difficulties obtaining capital quickly and efficiently.
“BPRSs must approach many [potential investors] multiple times and continuously, incurring costs to be able to find new investors or even to replace existing ones. Finally, their growth is stunted due to the slow increase of capital,” he explained.
Also read: BPRS HIK Parahyangan Revises Petition on Sharia Banking Law
Meanwhile, Executive Director of Ternate City BPRS Risdan Harly said his BPRS found difficulties collecting capital from the public or third parties while on the other hand the financial services authority and BI pushed BPRSs to grow and serve the public.
“As Ternate City government-owned bank entrusted with carrying out payment transactions for the Ternate City Government, we experienced difficulties because we could not facilitate payment traffic, so our opportunity to obtain economical third-party [services] eventually had to be transferred to commercial bank accounts. [Despite] earning the trust of the Ternate City Government, along with the Minister of Finance’s approval for BPR Syariah Bahari Berkesan in managing the income and expenditures of the Ternate City Government based on the Decree No. S-447/MK/2016, we are still experiencing difficulties,” he said virtually.
Also read: House Explains Difference Between BPRS and Commercial Banks
Risdan emphasized that his BPRS had difficulties offering its products, especially those related to the collection of third-party low-cost funds. Restricting payment traffic, he said, is also detrimental to the sharia BPR industry.
“In order to support our operation, we must perform transactions with commercial banks, which increases our fees, which we automatically charge on our customers. In addition, cooperation with commercial banks could increase expenses and time of service,” he stressed.
Also read: Faisal Basri: BPRS Can Contribute to National Economic Growth
At the preliminary hearing, the Petitioner alleged that Article 1 point 9, Article 21 letter d, and Article 25 letter b of the Sharia Banking Law had had restricted or prohibited sharia microcredit banks from offering payment traffic services. Article 21 letter d stipulates that sharia microcredit banks cannot transfer money, either for their own interest or for the benefit of customers independently, but only through their accounts at sharia commercial banks, conventional commercial banks, and sharia business units (UUS).
The Petitioner asserted that restrictions and prohibitions on providing payment traffic services had kept sharia microcredit banks from optimally providing banking services to the public, especially to micro and small businesses to encourage sustainable national economic growth. Furthermore, Bank of Indonesia (BI) had established a National Payment Gateway (GPN) policy aimed at smooth, safe, efficient, and reliable national payment system, and at taking into account the increasing, competitive, and integrated developments in information, communication, technology, and innovations. However, Article 1 point 9, Article 21 letter d, and Article 25 letter b of the Sharia Banking Law have resulted in sharia microcredit banks unable to be directly connected to the GPN policy system. Therefore, the Petitioner requested that the a quo articles be declared unconstitutional.
Writer : Utami Argawati/LA
Editor : Lulu Anjarsari P.
PR : Fitri Yuliana
Translator : Yuniar Widiastuti (NL)
Translation uploaded on 7/29/2022 07:11 WIB
Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.
Wednesday, July 27, 2022 | 15:58 WIB 279