"Internet Banking in Indonesia"

Internet banking is a banking service by bank via internet to facilitate transactions and access their account information (Direktorat Penelitian dan Pengaturan Perbankan Bank Indonesia). The service is under the supervision of Bank Indonesia. Facilities included in internet banking are money transfer, bill payment, checking account statement, etc. 

These be accessed through laptop or can via smartphone connected to the internet. Internet banking seems to be more flexible than service with counter system in bank, because it does not recognize the time limit and place to queue up. In principle, internet banking services are almost similar to ATM services. So, this essay will provide information about internet banking in Indonesia.

Internet banking has the advantage to customers that is to transfer money, payment gateway, knowing balance information, closing accounts, and other transactions. To transfer money, this service makes it to be more efficient and easy because it can be done anywhere and anytime. 

Payment gateway is a payment facility for certain services (including telephone, water and electricity) provided by the bank so that customers can make direct payments via the internet. To know the balance in the customer's account just enter the ATM PIN and then the amount of balance will appear in customer's account. 

Internet banking can also make account closure, but if the account will be reactivated, the customer must activate it in the bank. These can be done by entering the password and Personal Identification Number of the customer without having to go to Automated Teller Machine (ATM) or go to bank to do all transactions.

The arrangement of Internet banking in Indonesia has been regulated in the ITE act through the decision of the Board of Directors of Bank Indonesia No 27/164/KEP/DIR and Bank Indonesia Circular Letter No 27/9/UPPB dated March 31, 1995 regarding the use of information systems by banks (Security System Layanan Internet Banking PT BANK MANDIRI (Persero) Tbk).

On the circular, it is mentioned that the purpose of securing information systems technology is to reduce the risk of organizing information systems technology that can harm the interests of banks and the public. Bank Indonesia provides guidance so that the implementation of Internet Banking does not harm the customers and the bank itself.

Internet banking has become a technological advancement nowadays. Bank Indonesia is still monitoring and managing internet banking to avoid future problems. The creation of laws is also useful to protect the use of internet banking. And now it has been considered an important role in a bank with various transactions. But, with the existence of internet banking we must remain vigilant about the potential crimes. So, we must be careful to transact using it.

References:

• Annisya, Rialda., Norshela Hastuti, Maynina.2012."Security System Layanan Internet Banking PT BANK MANDIRI (Persero) Tbk." Jurnal Sistem Komputer 2 (2): 56
• Direktorat Penelitian dan Pengaturan Perbankan Bank Indonesia. n. d. "Internet Banking di Indonesia." Bank Indonesia.