Starting today, 1st July 2020, credit and debit card transactions in Indonesia will be required to use a six-digit PIN (personal identification number) for all activities.
The change is in accordance with the mandate from Bank Indonesia (BI) whereby authentication via signatures will no longer be accepted.
There will be no issues with foreign cards that have four- and five-digit PINs. Cards that have been issued by banks outside Indonesia will still be required to use a PIN and signing to authorise a transaction will no longer be an option. Credit and debit card users without a PIN are urged to contact their issuing bank or credit card company.
In the run-up to the new rules, banks and credit card issuers have actively been educating about and encouraging the use of PINs to facilitate electronic transactions. The Indonesian Credit Card Association (AKKI) has also conducted education initiatives with credit card holders in the WAJIPIN campaign to encourage credit card holders to immediately activate their credit card PIN.
Under the new ruling, all credit card transactions that do not use PIN authentication will be immediately rejected by the Electronic Data Capture (EDC) machine at the point of sale. Credit and debit card transactions using a PIN are considered to be safer because they reduce the potential for funds to be stolen through skimming.