Indonesia Expat

Key Sectors to Cash In On Bank Indonesia Cashless Payments

National Payment Gateway

Bank Indonesia, the country’s central bank, is developing a National Payment Gateway which will soon see electronic payments processed within the country and increase efficiency in many key sectors.

The move is prompted by a high number of domestic debit card transactions processed overseas. Most debit and credit cards issued by Indonesian banks utilise the international networks offered by giants Visa and MasterCard.

With the National Payment Gateway, data processing will be conducted domestically. Bank Indonesia hopes the move is both more efficient and beneficial to building financial infrastructure and sovereignty.

The new system will be applied to ATM debit and credit card transactions as well as electronic transfers.

Onny Widjanarko, Head of the Transformation Programme Centre at Bank Indonesia, said the bank is currently conducting technical and operational tests.

“We will continue testing until the system is stable enough. We hope that the regulation will be ready in May and implemented in July,” Widjanarko said, as quoted by Detik.

Bank Indonesia is currently communicating with businesses and banks about the programme and will maintain operations at this stage, he added. Widjanarko indicated that no banks in Indonesia currently have the capacity to implement the programme.

Bank Indonesia has long-established cooperations with national banks, particularly BRI, BNI, Mandiri and BCA, in processing electronic transactions.

The central bank has cooperated with Artajasa Pembayaran Elektronis, Alto Network and Rintis Sejahtera to develop infrastructure.

The new system is expected to increase efficiency in the tourism sector particularly, with the National Payment Gateway easing booking and payment processes for domestic and foreign tourists.

See: New Credit Card Interest Rates From June After Bank Indonesia Rule

Image credits: Outletemas

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