ADVANTAGES: MODERNIZATION OF INFRASTRUCTURE THROUGH TECHNOLOGY

Through the partnership with PT Pos, Kinesis payments and savings infrastructure will deliver a technologically-driven value, efficiency and access that improves the lives of citizens and enhances the operations of the government.

• The Kinesis payment infrastructure is delivering unique cross-border value to the millions of people remitting funds to Indonesia monthly, commencing with the 3 million migrant workers sending remittances across the Malaysia-Indonesia Corridor every month.
• Kinesis payment technology makes it possible for citizens and governments to transact internationally and domestically with value and efficiency, unseen in the payment provision of the region.

Citizens and Governments can instantly purchase and store savings in the stable value of gold through the immediate convenience of Kinesis mobile savings solutions.

1. BENEFITS FOR THE GOVERNMENT / OPERATOR

• • Provide important financial access to the unbanked and underbanked citizens, currentlyexisting outside of the economic system.
  • Accumulate valuable data on a previously unmapped section of the population.
  • Utilise fresh insight into previously unbanked citizens to improve services and tailor provision effectively.
  • Access a new, inexhaustible governmental income source, calculated from a share of the transaction fees of every citizen referred to the Kinesis yield system for life.
  • The citizens will receive a fair, low-cost alternative to the current remittance provision monopolizing the region.
  • Advance the national geoeconomic agenda by being a leading nation, embracing cutting edge digital financial technological infrastructure, without the cost and burden on the government’s antiquated industry and lack of technological resources.
  • Amass true, secure national wealth in a debt-free currency, untethered from the instability of the US dollar and based on the stable value of gold.

5. SUSTAINABLE DEVELOPMENT GOALS

Financial Access

Kinesis accessible, low-cost mobile financial services provide vital financial access to the Indonesian unbanked community excluded from the financial system. The United Nations have established financial inclusion as a key enabler for achieving 6 of their 17 Sustainable Development Goals.

Every Indonesian citizen with a mobile phone and the internet, can open a free Kinesis account and access our valuable financial services. The empowerment of financial access has the potential to substantially increase the quality of life of Indonesian citizens and the economic growth of the nation.

Sustainable Development Targets

1. End poverty in all its forms everywhere

1.4 “By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to… appropriate new technology and financial services, including microfinance.” Kinesis provides the financially underserved people of Indonesia with financial access that allows them to lay the economic foundations of a future free from poverty.

9.A “Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support”. Kinesis robust financial infrastructure provides financial services to all, regardless of their location or financial status.

10.2 “By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.” Kinesis payments and savings solutions are driving economic inclusion of every single citizen of Indonesia, without exception.

Kinesis provides a fair, low-cost cross-border payment alternative to the current remittance provision, which deprives Indonesian communities of millions of dollars annually. UN research shows the remittance reaching developing countries is a significant factor in achieving 11 of the 17 SDGS.

8. CONCLUSION & OUTLOOK

For the Indonesian government, the introduction of a private partner to implement and run the Kinesis payments and savings solutions via the PT POS mobile app - PosGO, was an ideal scenario in a number of respects:

• Primarily, the PPP mechanism is a way of investing in much needed public infrastructure, achieving efficiency improvements, whilst limiting the impact on public budgets.
• Through accessing the efficiency of the private sector and the implementation of the Kinesis Monetary System, the PosGO mobile app brings a wide range of benefits for the government including risk transfer (to the private sector), enhanced demand management, expanded product/services to clients and extremely cost-effective pricing, while at the same time, generating an added revenue stream for the government.
• It will also provide a secure and reliable form of access to financial solutions and economic growth, both easier to use and providing government connectivity, economic data and accessibility into a previously unreachable environment.

Fundamentally, such benefits are coming at no extra cost to either the government or citizen, as the investment in this new system has come entirely from the private sector and seamlessly integrates into existing infrastructure.

INDONESIA CASE SUMMARY

Worldwide the majority of national wealth is bound to volatile debt-based global economics. The currencies of the world are held in precarious economic balance, with their value inseparably tied to the world’s reserve currency, the US Dollar.

In terms of financial access, many countries have difficulty in providing their citizens with basic banking services or fair alternatives to inefficient, costly remittance providers. Governments are cut out of fruitful revenue streams and locked out of vital areas within private partnerships, leaving citizens at the mercy of costly and profit-centric business.

A nation of citizens stranded outside of the financial system leaves governments with major issues

• • Poor financial record of their population
  • No financial savings across a vast populous
  • Citizens have no financial security
  • Widespread financial disempowerment
  • Stunted economic growth and societal development

CASE STUDY

Problem

A national currency dependent on the economy of world powers limits that government’s resilience to economic instability. Absence of robust payment infrastructure limits government provision of banking services and forces reliance on inefficient, costly remittance providers. Governments do not capitalise on scalable sources of income, and their citizens are subjected to financial exclusion and ineffectual, high-cost cross-border payments.

Implications

A government that has limited tools to protect the value of its currency from the erosion of external financial influence, operates with no guarantee of long-term economic security. Insufficient payment solutions leave governments with a poor financial record of their population. Citizens deprived of financial access and cost-effective cross-border payments are left stranded outside of the financial system. Inability to save funds securely, the unbanked and underbanked live with little financial security. Widespread financial disempowerment stunts economic growth and societal development of a nation.

Solution

1) Creating and integrating a new currency

• Kinesis enables governments to create a currency based on a true, stable store of value, physical gold and silver.
• Empowering countries to accumulate tangible, physical wealth and regain control of their currencies’ value, buffering against the fall out of global debt.
• The Kinesis system facilitates a nation’s economic independence through access to the stable value of precious metals, all integrated digitally into the existing financial system.

   

2) Leveraged economic benefit

Kinesis opens up a multitude of new revenue opportunities for governments and transformative access, value and efficiency to their citizens.

• Kinesis’ infrastructure delivers chargeless, lucrative and secure gold storage and savings solutions, and instant, inexpensive cross-border payments.
• Plugging into the Kinesis Monetary System allows governments and organisations to generate revenue from the use, storage and transacting of gold- and silver-based currencies in every economy that uses it.

   

3) Reintroducing wealth into the economy

• Government capacity to monetize gold reserves, allows new wealth to circulate into the economy.

GOAL 4: Yields Based on Active Participation For Rewards and Government Initiatives

Both the government and citizens alike are accessing the profit and value of the Kinesis gold storage and saving program. Indonesian gold storers and savers earn an unprecedented, passive yield, without paying storage fees.

Kinesis unique yield technology means the government and citizens of Indonesia, profit from all economic activity across the Kinesis system. Through participation in the Kinesis system, Indonesia is earning from the transactional volume of countries it has no formal relationship with. Additionally, the Indonesian government earns a significant yield from the transaction fees of every citizen or business it introduces into the Kinesis system.