REGULATORY REFORM OF INDONESIAN PAYMENT SYSTEM

Bank Indonesia is initiating Regulatory Reform on Payment System with the issuance of Bank Indonesia
Regulation (PBI) No. 22/23/PBI/2020 regarding the Payment System, effective July 1, 2021.

1 2
Why is Bank Indonesia conducting regulatory What is the objective of payment
reform on payment system? system regulatory reform in Indonesia?

The development of Digital

Indonesia Payment Regulatory Restructuring the payment system
System Blueprint
Economy and Finance
2025 Reform industry and providing a legal umbrella
that covers end-to-end payment system
ecosystem.
Integrated regulatory,
1 Business model complexity licensing, supervisory and
Accommodating the development of
and risks; reporting function Strike a balance between digital economy and finance.
optimizing innovations and
2 Complex and rigid
regulations; and maintaining stability as well Strengthening and simplifying existing
as national interest regulations.
3 Global regulatory
transformation in digital.

3 What are the salient provisions of the regulatory reform?

Transitional Provisions
1 RP 2
RP a. LICENSING REQUIREMENTS, INCLUDING INITIAL CAPITAL

Existing licensed Payment 2-year period to meet the

Strengthening access policy
through reclassification and
access policy mechanism using
activity-based approach,
provision of license based on
categories of activities
(bundling), and the amendment
of minimum paid up capital
requirements.
3 Existing licensed Payment System Service Providers (PJSP)
System Service Providers (PJSP) new requirements.
Strengthening supervision
and assessment through the
classification of payment Applicats shall meet the licensing
system providers, including License applicants at the time
Bank Indonesia Regulation (PBI) requirements under Bank Indonesia
the introduction of the new Regulation (PBI) concerning the
payment system capital concerning the Payment System
becomes effective payment system.
requirements.
b. SHAREHOLDINGS AND CONTROLLING ASPECTS
4

Integrated payment system Grandfathering (non-retroactive)

data and/or information Providing there are no changes in the composition of foreign
Strengthening the sandbox management. ownership and/or control undertaken by a foreign entity unless
function of payment system in accordance with BI policy or a follow-up supervisory action
technology innovation.
5 c. APPLICATION FOR APPROVAL
Entities that have submitted or in the process of approval for activities and
products development and/or cooperations at the time the Bank Indonesia
Regulation (PBI) concerning the Payment System becomes effective are
Strengthening the institutional required to meet the requirements in accordance with the
aspects of ownership and Bank Indonesia Regulation.
controlling.
d. SRO APPOINTMENT
Entities appointed as self-regulatory organization (SRO) prior to enforcement
of Bank Indonesia Regulation (PBI) concerning the Payment System are
appointed as SRO as stipulated in the Bank Indonesia Regulation.

Regulations in full, scan:

Promulgation of the Bank Indonesia Regulation (PBI) concerning the
Payment System will be followed by the issuance of implementing
regulations to support the regulatory reform.

100 Upon enactment of the Bank Indonesia Regulation (PBI), all regulations
.00
0 in the area of payment system issued by Bank Indonesia shall remain
effective providing there are no contradictories with the Bank Indonesia
Regulation concerning the Payment System.

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