SINGAPORE - Singtel and Indonesian carrier Telkomsel have teamed up to make it more convenient for Indonesians to receive remittances from Singapore.
Money transferred via the Singtel Dash mobile payment app from Singapore to Indonesia can now be cashed out at 4,500 post office branches operated by PT Pos Indonesia.
The service, also managed by Weselpos Instan, PT Pos Indonesia's remittance business, was launched on Sunday (March 26) at the Festival Rising50 held at the Indonesian Embassy, which celebrates 50 years of bilateral ties.
The service will benefit the unbanked population in Indonesia. According to a 2014 World Bank report, only about 36 per cent of adults in the country have a bank account.
Currently, the Singtel Dash app offers remittances to Indonesia but it has to be sent to a bank account. A flat fee of $9 is levied with a limit of $999 which can be transferred at a go.
As a promotion, Singtel said it will waive the remittance fee until the end of the month (March 31), for customers who send money from Singtel Dash for cash-out at the participating post offices.
Mr Yuen Kuan Moon, chief executive of Consumer Singapore at Singtel, said: "Indonesia is one of our main remittance corridors and we are pleased to partner Telkomsel to offer convenient and secure mobile remittance cash pick-up service for our Indonesian friends."
Telkomsel chief executive Ririek Adriansyah said the new service will support the Indonesian government in promoting financial inclusion among its people, especially the unbanked segment.
"Foreign remittance enables them to improve their quality of life as well as provide an opportunity to begin saving for the future," said Mr Adriansyah.
Singtel and Telkomsel also announced on Sunday that they are working on a remittance service between mobile wallets, from Singtel Dash to Telkomsel's TCash.
There are about 200,000 Indonesians living and working in Singapore, with total remittances amounting to over US$409 million (S$573million) annually.