Euronet to Operate the Operate the Cakra ATM Network in Indonesia
Euronet to Operate the Operate the Cakra ATM Network in Indonesia
Euronet to Operate the Operate the Cakra ATM Network in Indonesia Leawood, Kansas, USA, March 29, 2000 – Euronet Services Inc. (Nasdaq: EEFT) will begin providing transaction switching services for a shared network of ATMs owned by three Indonesian banks. The network, called Cakra, currently comprises about 400 ATMs. Euronet will provide these services through a joint venture with PT Sigma Cipta Caraka, an Indonesian banking information technology firm and the local distributor of Euronet’s Arksys brand software.
The joint venture company, PT Euronet Sigma Nusantara, marks the first expansion of Euronet’s network services division into Asia, and will be the company’s third base of network services operations after Budapest, Hungary and Little Rock, Arkansas, USA. The joint venture will generate revenues from network membership fees paid by the banks as well as a small fee per transaction switched.
The joint venture company has also begun marketing its ATM outsourcing services to Indonesian banks and local subsidiaries of multinational banks, with the intention of providing ATM monitoring and other network services in addition to transaction switching.
Michael Brown, Chairman and CEO of Euronet Services, said, “This joint venture with a valued business partner enables Euronet to deepen our presence in Indonesia without undue burden on our financial or management resources. It also provides us a springboard to a huge market for our other electronic financial transaction and payment services. With Euronet’s focus on introducing e-commerce and m-commerce products, we see Indonesia as a tremendous opportunity.”
Djarot Subiantoro, PT Sigma’s President, added, “We look forward to expanding our service offerings and working with Euronet Services to provide a high degree of ATM reliability and customer service in this market. With our independent, non-bank company operating the Cakra network, we believe that other Indonesian banks and local subsidiaries of multinational banks will be encouraged to become members.”
The transaction processing services of the joint venture will be provided by PT Sigma Cipta Caraka’s existing data center facilities in Jakarta, and will run on the Arksys Gold Net network software. Euronet will also provide its experience in ATM network operations to the venture. Initial start-up expenses are expected to be minimal. The joint venture company is 80% owned by Euronet Services Inc. and 20% owned by PT Sigma Cipta Caraka, and will commence transaction switching operations in the second quarter of 2000.
Euronet’s partner in the joint venture has been the distributor of the company’s Arksys software for over 10 years in Indonesia. As a result of this very successful relationship, 18 banks in Indonesia are currently using Arksys software to operate their ATM and debit card systems.
Brown added, “The fact that so many Indonesian banks are already using our Arksys software as their core transaction management system gives us a natural advantage for sales of other electronic banking products and services in this market.”
The company estimates that there is large potential for the growth of electronic retail banking services in Indonesia, especially given the recent consolidation in the Indonesian banking sector. With approximately 215 million people, Indonesia is the fourth most populous country in the world. However, with only about 5,000 ATMs in operation, the country’s ATM density is only about one ATM for every 43,000 people. By comparison, Poland has an estimated ATM density of one ATM for every 10,000 people, and the United States has one for about every 1,250 people.
Euronet Services Inc. is a leading provider of electronic financial solutions and transaction processing services. Euronet operates a network of over 2,200 ATMs in Europe and the U.S., and offers the Arksys software suite of integrated solutions for electronic payment and transaction delivery systems. With eight offices in Europe and three in the United States, Euronet Services offers ATM network development and participation, outsourced management solutions, comprehensive software solutions, and professional consulting services to retail banks and companies in more than 60 countries around the world.
Any statements made in this press release which concern Euronet’s or its management's intentions, expectations or are predictions of future performance are forward looking statements. Euronet's actual results may vary materially from those predicted or anticipated in those forward looking statements as a result of a number of factors, including competition, unanticipated regulatory developments in the markets in which Euronet does business, or technical problems with development of products. Additional explanation of these factors and other factors affecting the Company's performance are set forth from time to time in Euronet's periodic reports filed with the U.S. Securities and Exchange Commission, including, but not limited to, Euronet's Form 10-K for the period ended December 31, 1999. Copies of this filing may be obtained by contacting the Company or the SEC.
The joint venture company, PT Euronet Sigma Nusantara, marks the first expansion of Euronet’s network services division into Asia, and will be the company’s third base of network services operations after Budapest, Hungary and Little Rock, Arkansas, USA. The joint venture will generate revenues from network membership fees paid by the banks as well as a small fee per transaction switched.
The joint venture company has also begun marketing its ATM outsourcing services to Indonesian banks and local subsidiaries of multinational banks, with the intention of providing ATM monitoring and other network services in addition to transaction switching.
Michael Brown, Chairman and CEO of Euronet Services, said, “This joint venture with a valued business partner enables Euronet to deepen our presence in Indonesia without undue burden on our financial or management resources. It also provides us a springboard to a huge market for our other electronic financial transaction and payment services. With Euronet’s focus on introducing e-commerce and m-commerce products, we see Indonesia as a tremendous opportunity.”
Djarot Subiantoro, PT Sigma’s President, added, “We look forward to expanding our service offerings and working with Euronet Services to provide a high degree of ATM reliability and customer service in this market. With our independent, non-bank company operating the Cakra network, we believe that other Indonesian banks and local subsidiaries of multinational banks will be encouraged to become members.”
The transaction processing services of the joint venture will be provided by PT Sigma Cipta Caraka’s existing data center facilities in Jakarta, and will run on the Arksys Gold Net network software. Euronet will also provide its experience in ATM network operations to the venture. Initial start-up expenses are expected to be minimal. The joint venture company is 80% owned by Euronet Services Inc. and 20% owned by PT Sigma Cipta Caraka, and will commence transaction switching operations in the second quarter of 2000.
Euronet’s partner in the joint venture has been the distributor of the company’s Arksys software for over 10 years in Indonesia. As a result of this very successful relationship, 18 banks in Indonesia are currently using Arksys software to operate their ATM and debit card systems.
Brown added, “The fact that so many Indonesian banks are already using our Arksys software as their core transaction management system gives us a natural advantage for sales of other electronic banking products and services in this market.”
The company estimates that there is large potential for the growth of electronic retail banking services in Indonesia, especially given the recent consolidation in the Indonesian banking sector. With approximately 215 million people, Indonesia is the fourth most populous country in the world. However, with only about 5,000 ATMs in operation, the country’s ATM density is only about one ATM for every 43,000 people. By comparison, Poland has an estimated ATM density of one ATM for every 10,000 people, and the United States has one for about every 1,250 people.
Euronet Services Inc. is a leading provider of electronic financial solutions and transaction processing services. Euronet operates a network of over 2,200 ATMs in Europe and the U.S., and offers the Arksys software suite of integrated solutions for electronic payment and transaction delivery systems. With eight offices in Europe and three in the United States, Euronet Services offers ATM network development and participation, outsourced management solutions, comprehensive software solutions, and professional consulting services to retail banks and companies in more than 60 countries around the world.
Any statements made in this press release which concern Euronet’s or its management's intentions, expectations or are predictions of future performance are forward looking statements. Euronet's actual results may vary materially from those predicted or anticipated in those forward looking statements as a result of a number of factors, including competition, unanticipated regulatory developments in the markets in which Euronet does business, or technical problems with development of products. Additional explanation of these factors and other factors affecting the Company's performance are set forth from time to time in Euronet's periodic reports filed with the U.S. Securities and Exchange Commission, including, but not limited to, Euronet's Form 10-K for the period ended December 31, 1999. Copies of this filing may be obtained by contacting the Company or the SEC.