The Bank Indonesia (BI) Representative Office for Bali Province is encouraging the strengthening of the money changer and remittance ecosystem in Bali to ensure it is healthier and more competitive.
Advisor to the Bank Indonesia Representative Office for Bali Province, Indra Gunawan Sutarto, explained that strengthening the Non-Bank Foreign Exchange Business Activity (Kegiatan Usaha Penukaran Valuta Asing Bukan Bank or KUPVA BB), commonly known as money changers, and the Remittance Payment Service Provider (Penyedia Jasa Pembayaran Layanan Remitansi or PJP LR) ecosystem will continue, in line with Indonesia joining the Financial Action Task Force (FATF).
Additionally, with plans to enhance the supervision of KUPVA BB through the development of supervisory and regulatory technology, there is a need to improve industry regulations.
“One of them is that Bank Indonesia has issued Bank Indonesia Regulation [Peraturan Bank Indonesia or PBI] No. 10 of 2024 concerning Implementation of Anti-Money Laundering [Anti Pencucian Uang or APU], Prevention of Terrorism Funding [Pencegahan Pendanaan Terorisme or PPT], and Prevention of Proliferation Funding of Weapons of Mass Destruction [Pencegahan Pendanaan Proliferasi Senjata Pemusnah Massal or PPPSPM] for Parties Regulated and Supervised by Bank Indonesia,” Sutarto divulged in a press release on Wednesday, the 19th of February.
Sutarto further explained that to maintain a healthier and more competitive KUPVA BB and PJP LR industry ecosystem, three key strategies must be strengthened: Business, Digitalisation, and Human.
“This strategy includes strengthening a sustainable business model, optimising digitalisation in operations, and improving the quality of human resources in this industry,” he also explained.
To support the enhancement of human resource quality, Bank Indonesia has issued PBI Number 5 of 2024 concerning Competency Standardisation in the Payment System Sector, which mandates that professionals in the payment system industry meet specific capacity standards in their respective fields.
Meanwhile, the Senior Economist of the BI Payment System Policy Department, Danarto Tri Sasongko, provided a detailed explanation of the latest provisions related to APU, PPT, and PPPSPM. According to him, the refinement of these provisions aligns with the P2SK Law (Financial Sector Development and Strengthening Act) and the FATF Recommendation, strengthens proportional and dissuasive sanction regulations, and supports the blueprint for the Indonesian Payment System 2030.
“This refinement is expected to increase industry compliance, strengthen mitigation of illegal financial risks, as well as support the stability and integrity of the national financial system,” Sasongko added as quoted from the press on Wednesday as well.