Bank Indonesia overhauls Indonesia’s payment system
25 February 2021
The Indonesian Government is currently revamping the Indonesian payment system regime with its recent issuance of Bank Indonesia (“BI”) Regulation Number 22/23/PBI/2020 on the Payment System (“PS Regulation”), to be effective on 1 July 2021. The PS Regulation is intended to be an overarching regulation to reform Indonesia’s current payment system regime and supports the five initiatives under the Indonesia Payment System Blueprint 2025, unveiled by BI in 2019.
The PS Regulation attempts to shift the traditional regulatory approach for Indonesian payment systems from being “entity-based” to becoming more “activities and risk-based”. While the PS Regulation covers many topics, this article focuses on three aspects: operator classifications, licensing and ownership/control.
This is an extract of an article by Soemadipradja & Taher, an Indonesian law firm with which Allen & Gledhill has a strategic alliance. To read the full article, please click here.