Wallex: A Highly Efficient FX Account for Business

Based on data from the Central Statistics Agency (BPS), Indonesian people, especially those living in urban areas, are increasingly buying processed food, rather than cooking themselves at home. BPS data states that expenditures to buy processed foods - both in food stalls, supermarkets, and restaurants - grew from 29.6% in 2016 to 34% in 2018. This is supported by Nielsen's data in 2016, where 11% of the population Indonesians eat out more than once a week.

Along with this fact, more and more restaurants, restaurants and stalls have sprung up to meet the culinary needs of the community. However, the culinary business is arguably a risky business. Lots of external and internal factors that can affect restaurant turnover. Large capital, strategic location, and good taste are no longer the sole guarantee to be able to survive amid high market competition.

This was the basis for the Marugame Udon restaurant chain's concept which is underpinned by fresh udon, an open kitchen, and tempura, with a particular focus on internal governance and good restaurant management. Licensed under PT Sriboga Marugame Indonesia (SMI), the restaurant chain has opened more than 60 outlets across Indonesia and beyond.

The challenge: Banks charged several hundred thousand IDR for each international transaction

Marugame Udon sources the food ingredients and kitchen utensils directly from Japan., which necessitates the need for international transactions. The company used to depend on banks when making their overseas payments from IDR to JPY to their suppliers, but fees charged for each transaction was costly, and could go as high as several hundred thousand IDR each time.

The company also had to go to the bank's physical branch each time they wanted to make a payment to their suppliers in Japan, and adjust when they visited to ensure it was within the bank's operational hours.

Mr. Akhmad Nurhidayat, SMI's Chief Financial Officer shared:

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"There are inefficiencies in sending money using banks overseas. The cost per transaction is very high, because most have to use a correspondence bank. Then, the transaction process also takes time, because it must adjust to the correspondence bank's operating hours.”

For the management team, this process was too inefficient and they felt that they could save both time and money by shifting away from banks. Eventually, they decided to switch to Wallex.

Wallex serves up better FX rates, faster payments and greater convenience to Marugame Udon

Making the switch to Wallex allowed Marugame Udon to reduce their international payments costs by up to 60%.

With Wallex, Marugame Udon only pays a flat fee of IDR 100,000 per transaction, compared to banks and other remittance providers that set progressive rates. Payments are much faster, and can be completed in as little as one business day.

They also enjoy competitive, near mid-market FX rates, and can access more than 46 currencies, compared to only 10 or 15 with banks. The finance team finds the fully-digital platform much more convenient to use as well, since it can be accessed to perform international transactions at any time.

In a nutshell, making the switch to Wallex means Marugame Udon now enjoys:

Savings of up to 60% on international payments
100,000 IDR flat fee on all transactions
Faster transactions that can take just 1 day
Competitive, near mid-market FX rates

Mr Akmad was especially delighted, sharing:

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“After using Wallex, we are able to reduce 50% to 60% of our international transfer costs. This is a good example of a finance platform that helps businesses run more efficiently.”

According to Andy Putra, Wallex's Country Manager in Indonesia, this a flat transaction price of Rp 100,000 per transaction, compared to traditional service providers that set progressive rates, was the key driver for these savings.

Moreover, they now get a competitive exchange rate for 48 foreign currencies (compared to 10-15 that are offered by banks). Wallex can also be accessed online at any time, and can complete international transaction activities within 1 to 3 days.

Mr Putra explained "We are aware that the business world in this digital era is spinning very fast and completely online. Therefore, international class businesses such as Marugame also demand international transfer solutions that are safe, practical, and can be accessed anytime and anywhere. We are pleased that Marugame has entrusted Wallex to facilitate international payment activities."

For more information about Wallex and learn how it can support your business, please visit www.wallex.asia or talk to our FX expert.

About Margumae Udon:

Marugame Udon serves the best Udon & Tempura from Japan. Marugame Udon first opened in Indonesia on February 14, 2013 at Taman Anggrek Mall. All recipes used are original recipes from Marugame Japan, cooked using quality and natural ingredients that are processed at each of their outlets with special techniques from Japan and controlled with stringent quality assurance standards.

Marugame Udon already has branches in various major cities in Indonesia and currently has more than 1100 branches throughout the world, such as in Los Angeles, Hawaii, Moscow, Sydney, Seoul, Hong Kong, and other major cities in the world.

Marugame Udon has received MUI halal certification on October 7, 2015 and is committed to continuing to present the best Udon & Tempura to its loyal customers.