Saham, IHSG, Reksadana, Indonesia, Trading, Investasi, Training, Strategy

BI announced five initiative on payment system



JAKARTA (TheInsiderStories) – Indonesian central bank (BI) announced a five initiative of Bank Indonesia in payment systems to improve the payment system in the country. The state-owned banks lead by State Enterprises Ministry plan to establish switching company to  implement National Payment Gateway (NPG) in this year.

According to BI statement, NPG is developed to meet people’s demands for efficient payment system and is able to reach the whole community. NPG according to the central bank is infrastructure that integrates a variety of channels (channel) payments to facilitate electronic payment transactions.

The main principles of BI in developing the NPG is to consider the acceptance of stakeholders, time to market, settlement, security, healthy competition and promote the national interest. Therefore, the conceptual design of Bank Indonesia in the NPG is more institutional arrangement to ensure the interconnection and interoperability. NPG implementation will be gradual in 2016, which in turn will provide more benefits for society and the development of the national card.

Other initiative on the use of chip and pin cards Payment Instruments (APMK), has been initiated since 2005 on Credit Card. The use of chip technology is believed to reduce the risk of card fraud and theft of identity data on the card (skimming).

Therefore, in 2015 the Bank Indonesia mengeluakan SE No. 17/52/DKSP regarding implementation of National Standards Technology Online Chip and Pin 6 digits for ATM/Debit publish in Indonesia and SE No. 17/51/DKSP regarding Operation Card Payment Instruments.

BI together with the industry has been gradually preparing for the use of chip technology in ATM/Debit card, and will be implemented starting July 1, 2017 to December 31, 2021. This means that on January 1, 2022, all ATM / Debit should chip technology (except with certain nominal can still use magnetic stripe) and processed domestically.

In addition to security concerns, the use of these chips to promote domestic processing of national interest so as to support national economic efficiency and independence.
Operation of the Payment Transaction Processing

This provision aims to accommodate and anticipate innovation in the field of payment systems, especially with the growth and development of e-commerce. It also supports initiatives across ministries and authorities and is already in line with the road map and Plan of Government Regulation (RPP) e-commerce.

The rules governing the operation of payment systems processing and also a means of supporting and requires the organizers to the Indonesian legal entities, do the processing domestically, the obligation to use Rupiah and conduct transactions through the national banking system. This rule also applies to the Financial Technology and will be issued in September 2016.

BI also supports the development of Financial Technology, to continue to encourage innovation and healthy competition, but remain in the corridors of prudence. Therefore, in the near future, a number of policies related to FinTech be issued by the central banks such as :

a. FinTech Office: unit / task force as a container evaluation, assessment and mitigation of risks, as well as related research activities FinTech initiator. In addition, the FinTech Office is also an arena for collaboration among industry participants, and ensuring the synergy and harmony among fellow regulators.

b. Regulatory Sandbox, which is a laboratory that will be used by businesses and regulators to conduct testing of the product or business model, as well as a means for Bank Indonesia to facilitate the development of innovation and test the policy to be issued.
Two of these policies will also be launched in the near future.

To support the distribution of social assistance programs by the government, BI has an initiative the distribution business model in non-cash social assistance are prioritize on interconnection and interoperability in order to prioritize national interests.

One form of implementation of business models of non-cash social assistance is through cooperation with HIMBARA (Association of the State Bank) and agent e-Warong Group Joint Family Hope Program (PKH KUBE), initiated by the Ministry of Social Affairs.
In the future, to support the efficiency, accuracy of the intended use of the account, and sustainability for the participating banks then Bansos integration will be carried out in one account as well as data stored nationally.

This business model will be extended to involve institutions or other institutions, so as to encourage financial inclusion in Indonesia.

BI is aware that rapid technological developments that affect the development of the Payment System in Indonesia. As authorities Payment Systems, Bank Indonesia will continue to act as regulator, facilitator, overseer for the achievement of Payment System a safe, smooth, efficient, attention to expanding access and promoting national interests.


The post BI announced five initiative on payment system appeared first on The Insider Stories.

Source: The Insiderstories
BI announced five initiative on payment system

Comments are closed, but trackbacks and pingbacks are open.