DIGIVESTASI - Several banks in Indonesia are reducing the number of ATMs deployed in various locations. This is recorded in the Indonesian Banking Surveillance Report released by the Financial Services Authority (OJK). The report reveals that the network of conventional commercial bank offices across Indonesia remains at 115,539 units in the fourth quarter of 2023, a decrease of 4,676 units.

The banking network is still predominantly made up of electronic banking terminals (ATMs/CDMs/CRMs) with a total of 91,412 units, down 1,417 units from the previous year's 92,829 units.

What is causing the decrease in the number of ATMs that help customers withdraw their funds?

Banking Analyst and Payment System Practitioner Arianto Muditomo explains that the reduction in the number of bank office networks, particularly ATMs, is also happening in other countries.

"The causes of this phenomenon can be seen from various perspectives. One of them is the shift in transactions to digital services such as mobile banking and applications that are easy to use and accessible from various places of customers' choice," said Arianto when contacted by CNBC Indonesia on Sunday (9/6/2024).

Additionally, the relatively high investment and maintenance costs of ATMs are also a factor. From the customer's perspective, Arianto mentioned the emergence of new habits in using mobile banking and applications for financial transactions.

"The decrease in the number of ATMs in Indonesia is a complex phenomenon with various underlying factors. From both the bank and customer perspectives, there are logical and strategic reasons behind this trend," he added.

However, Arianto emphasized that ATMs still remain an essential service for many customers, especially in areas that do not yet have adequate internet access.

Therefore, he suggests that banks continue to innovate and adapt to customer needs, while still providing ATMs that are secure, easily accessible, and meet the needs of this digital era.

"In the end, a new balance will be created between the full use of digital services, ATMs, and physical branch outlets," concluded Arianto.

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