Credit Bureau in Indonesia

(Past, Present & Future)

Yohanes Arts Abimanyu
Asia Credit Reporting Forum 2019
PEFINDO Credit Bureau
11th July 2019
Thamrin Nine Ballroom , UOB Plaza, Chubb Square, Jakarta
Indonesia
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Introduction to Indonesia Credit Reporting System

PUBLIC CREDIT REGISTRY & PRIVATE CREDIT BUREAU

ü Since 1975, Central Bank of Indonesia (Bank Indonesia) has managed credit information to
fulfill the needs of the financial industry in order to provide a smooth provision of funds and
support risk management.

ü The needs for credit information from the banking industry evolved dramatically after the
economic crisis in 1998, and in 1999 Bank Indonesia launched Debtor Information System
(SID) and has provided standard credit information ever since.

ü The SID was limited to provide basic credit information, with the scope of data was
dominated by banks and a few non-bank financial institutions.

ü In 2004 a strategic decision was made to develop credit bureau outside Bank Indonesia to
provide comprehensive information and credit scoring to the banking industry.
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Introduction to Indonesia Credit Reporting System

PUBLIC CREDIT REGISTRY & PRIVATE CREDIT BUREAU

ü In 2013 Bank Indonesia specified the requirements to open a private credit bureau by issuing
a Central Bank Regulation No. 15/1/PBI/2013 concerning Credit Bureau and its
implementation regulation. Since 2013, Indonesia has adopted dual credit reporting system,
in which the public credit registry is managed by Bank Indonesia and also private credit
bureau.

ü Since 1 January 2018 the Financial Services Authority (OJK) implemented the Financial
Information Services System (SLIK), in order to replace the Debtor Information System (SID),
which was previously run by Bank Indonesia. Since then, OJK has become a public credit
registry.
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Introduction to Indonesia Credit Reporting System

DATA SOURCE CREDIT REGISTER CREDIT INFORMATION DISTRIBUTION

Public
Credit Financial
Registry Institutions
Financial Institution –
SLIK OJK Member Financial Services Standard and Basic
(by law) Authority Information
Society

Financial Institution
Private (non SLIK Member) Private Credit FI
Credit Bureau Non FI
Bureau
Non FI
Comprehensive & Added Public
Public Agencies Value Credit Information Agencies
Society
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Introduction to Private Credit Bureau

PEFINDO Biro Kredit is a Private Credit Bureau or Lembaga Pengelola Informasi Perkreditan (LPIP), i.e an entity
that has license from OJK to: collect and process
1. Credit Data (financing facilities data from Financial Institutions), and
2. Other Data (data other than Credit Data that can be used to describe/represent the ability of a person or
company to fulfill financial obligations)
to produce comprehensive, complete, and integrated credit information as a source of information for
financial institutions.

Regulations:
• PBI No.15/1/PBI/2013 and SEBI No.15/49/DPKL Year 2013 about LPIP.
• POJK Nomor 18/POJK.03/2017 Year 2017 about SLIK.
• Indonesia Economic Package Volume XII: LPIP is one of the factors in improving the ease of doing business.

2018 2019
Getting Credit Topic Getting Credit Topic

Ease of Doing Business in Indonesia 2017 62 55 44

Ease of Doing Business Ease of Doing Business

Getting Credit
2017 92 72 73
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Introduction to PEFINDO Biro Kredit

Shareholders

Mission Vision
• To strengthen the national financial system through the
provision of excellent, trusted and international-standard Become a world class credit information provider in
credit information services and solution order to support increase the financial inclusion to
• To achieve the creation of an inclusive financial system
improve the welfare of Indonesian people
through ease of access to credit information for all people
which can support the growth of the national economy

Board of Commisioners Board of Directors

Hamdi Hassyarbaini Endang Kussulanjari Tri Subari Yohanes Arts Abimanyu Mohammad Mukhlis Djoko Saptono
President Commissioner Commissioner President Director Director Director
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Introduction to PEFINDO Biro Kredit

Milestones

Mar 27th 2017 –

Feb 18th 2013 –
Commercially live May 8th 2017 –
Bank Indonesia
with 2 products: Grand Launching
issued Private
credit scoring & of PEFINDO Biro
Credit Bureau
report and Kredit ASEAN Risk Awards 2018 – Nov 22nd 2018
Regulation
profiling

Sept 2016 –
Dec 5th 2013 – Bank Since Jan 1st 2018 –
PEFINDO Biro
Indonesia issued Transition Data
Kredit obtained
Circular Letter Sources from
Debtors’ Credit
about Private Bank Indonesia to
Data (SID) from
Credit Bureau FSA (OJK)
Bank Indonesia

Dec 22nd 2015 –

Nov 10th 2014 – Apr 24th 2019 –
PEFINDO Biro
PEFINDO Biro Launching
Kredit obtained its
Kredit was Product Brand
operational
established “IdScore”
license
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Introduction to PEFINDO Biro Kredit

BANK 27 4
NON FINANCIAL
INSTITUTIONS
PBK’s
Members RURAL
BANK
56
195 MEMBERS * 10
(BPR)

COOPERATIVE

60

MULTIFINANCE 13
25
P2P LENDER

OTHER FINANCIAL
INSTITUTIONS (INSURANCE,
SECURITIES Co., PAWNSHOP,
* As of 10th July 2019
CREDIT GUARANTORS,
EXPORT FINANCING)
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Introduction to PEFINDO Biro Kredit

Added Values by PBK

2. Non Credit Data

IdScore
1. More Credit Data
& IdReport
Internet Browser
Connection
Employment Data ü Subject’s Score &
Standard Report Probability of Default
SID Historical Data ü Subject Information
Multifinance, Pegadaian, Tax Identity Data Write-off Status ü Credit and other
Jamkrindo. Securities
Company, Other FI, facilities
Cooperatives, P2P ü Fulfillment of credit and
Lending, Retailer
Financial Statements Company Rating
other financial
SLIK Data PBK Member Data (195 Members)
obligations
DATA POPULATION
±90 million Individual Vendor Black List Bankruptcy & IdMarketProfile
±500.000 Company Default
On-demand
market analysis
3. IdScore 4. Web Browser & Host-to- based on client-
host Connections specified
SLIK Report parameters

Credit Score
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IdScore
For an easy interpretation the scores group to the Risk grades, which varies by the level of the risk.

RISK
GRADE CREDIT SCORE PROBABILITY OF DEFAULT DESCRIPTION
A1 726 – 900 0.00% - 0.78% Very Low Risk
A2 718 – 725 0.79% - 1.07% Very Low Risk
A3 713 – 717 1.08% - 1.44% Very Low Risk
B1 701 – 712 1.45% - 1.89% Low Risk
B2 689 – 700 1.90% - 2.48% Low Risk
B3 677 – 688 2.49% - 3.25% Low Risk
C1 665 – 676 3.26% - 4.24% Average Risk
C2 653 – 664 4.25% - 5.52% Average Risk
C3 641 – 652 5.53% - 7.15% Average Risk
D1 620 – 640 7.16% - 11.12% High Risk
D2 604 – 619 11.13% - 15.32% High Risk
D3 574 – 603 15.33% - 26.57% High Risk
E1 530 – 573 26.58% - 50.00% Very High Risk
E2 251 – 529 50.01% - 99.99% Very High Risk
E3 250 100.00% Very High Risk
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IdReport
IdReport is a comprehensive credit report from multiple data sources (credit data and other data).
Despite its comprehensiveness, it is easy to read through the summary/dashboard section that displays
summary information of the debtor’s overall credit facilities.

Risk Grade Debtor’s related party Debtor’s personal information (and

Credit Score
its history)
Probability of Default Credit Data Days Past Due Up to 3 years of payment
Outstanding amount of the history
Total amount of the Past due amount
facility facility
Collateral information

Worker’s place of Length of BPJSTK Blacklist status as a

Bankruptcy
work membership vendor
Other Data cases

Tax ID verification Financial

Public servant’s Company rating statements
Write-off history in
employment grade
multifinance lending
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IdMarket Profile
IdMarket Profile is customized statistical data and information to be obtained on request. The
information can be utilized as a reference point in business planning, development, policy making, and
other business needs.

NPL_PerSegmen
5.0%
2.5%
2.4%
2.1%
0.0%
2…

2…

2…

2…

2…

2…

2…

2…

NPL_Investasi
NPL_Konsumsi
NPL_ModalKerja

Non Performing Loans by Segment Credit Concentration by Geographic

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Indonesia – Population, Financial & Digital Landscape

Facts:
188,9 million (70%) • 48,9% have bank account
• 18,4% borrowed from a FI or used credit card How to
Population above 15 years
old • 35,7% borrowed from family of friends solve this
268,2 million population • 54,8% borrowed any money
(World Bank Financial Inclusion Index 2018)

Financial Institutions Digital Customers

193 Multi >100 P2P 22% 78%

88 Banks desktop mobile 355.5 millions
Finance Lending
Unique Mobile
27 Regional 1 State-Own 19.509 Saving Users
150 millions
Banks Pawnshop & Borrow
Internet Users (20
Cooperatives 150 millions active
1.625 Rural
120 millions new internet
Securities users in 2018) Social Media
Banks 1 National
Companies
120 millions Users
Credit
Guarantee Co. active Messenger
128 + 18 Regional Application Users
Insurance Credit
(General & Guarantees
Life) Source: We are Social, Hootsuite 2019, www.fintechnews.sg, Otoritas Jasa Keuangan
Co. (OJK)
 * Future Products and Services
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What is next?
Products

Pre Sales Loan Assessment Loan Monitoring

Identify Potential Market Risk Assessment Portfolio Monitoring

IdScore IdBenchmarking *
IdMarket Profile
Comparison between a lender’s
IdReport (Credit Data) aggregate portfolio to industry

IdReport for Thin File (Other Data)

Credit score that is tailored and customized to

industry or types of credit
IdCustom Score *
Credit score calculated from non-
IdAlternative Scoring * credit data

Fraud checking on particular customer to identify and

avoid fraudulent application IdFraud Bureau System *
Self-check credit score and report
services to individual
My.IdScore (for individual) *
Seminar, Workshop, Data Competition *, Academy *
 * 2019 onwards
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What is next?
Governance
Implement the GRC standards

IT/IS NON – IT/IS

Project
Information Enterprise Risk C
Management
Security PMBOK Management O
Management ISO 31000 M
System (ISMS) (2018) P
G ISO 27001 * L
C
Business I
G IT Governance
COBIT Continuity A
(2018) Management N
ISO 22301 * C
E
Data Governance * Quality
Management
System
ISO 9001 *
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THANK YOU