Development - Bank Sentral Republik Indonesia
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June 29, 2017

PAYMENT SYSTEM DEVELOPMENT IN INDONESIA

In recent years, Indonesia’s urban population has become accustomed to using non-cash payment instruments, such as credit cards, debit cards, ATM cards and prepaid cards, to meet their payment needs. Prepaid cards are looming as the future trend, e.g. in payments for fuel at gasoline stations, for toll road tickets and purchases of other goods and services. test test test test

The processing of all payments involving these different instruments is handled by various payment system operators, such as banks and non-bank financial institutions. It is these institutions that will provide services ranging from processing of remittances to clearing and settlement.

The use of prepaid cards in transactions represents part of the evolution from cash to non-cash forms of payment. Illustrating this is the shift from use of paper-based instruments, such as cheques, drafts and non-negotiable payment orders, to electronic instruments, such as prepaid cards and even digital cash.

Non-cash payment instruments have come into use because of the obvious public need for conducting transactions not suited to use of cash. Even so, use of cash will never be fully displaced by non-cash instruments.  Why? Under certain conditions, cash is still a more efficient alternative.

The following table presents the most recent status of the various payment systems and their operation.

System

Transactions Processed

Operator

Members

Bank Indonesia Real Time Gross Settlement (BI-RTGS) System

-    High value interbank electronic funds transfers

-    Settlement: interbank money market, customer transfers, government transactions and monetary management

-    Funds settlement for Bank Indonesia Certificates and Government Securities traded on the BI-Scripless Securities Settlement System (BI-SSSS)

Bank Indonesia

-    All banks in Indonesia, including sharia divisions (143 banks)

-    One switching company

Bank Indonesia Clearing System

-    Debit funds transfers by means of electronically processed cheques, bilyet giro, debit notes

-    Credit funds transfers processed electronically for small payments

Bank Indonesia

All banks in Indonesia (143 banks including all branch offices numbering about 2100)

 

Central Depository and Book Entry Settlement System (C-BEST)

Funds settlement for securities transactions on the capital market

Indonesian Central Depository (PT KSEI)

All stock exchange members, funds settlement conducted through 4 settlement banks where stock exchange members maintain settlement accounts

Shared ATM Network – National Brands

Electronic funds transfers by means of ATM cards

PT Artajasa Pembayaran Elektronis (ATM Bersama)

67 banks are members of the ATM-Bersama network, interbank settlement processed through the BI-RTGS system

 

LINK

4 state banks, interbank settlement processed through the BI-RTGS system

 

PT Rintis Sejahtera (PRIMA)

ATM and Debit Prima network settlement processed through member accounts at BCA. Membership totals 25 banks.

 

PT Daya Network Lestari (ALTO)

15 banks are members of the ALTO network, settlement processed through member accounts at one member bank.

 

Cakra

3 banks are members of the Cakra network, settlement processed through member accounts at one member bank.

Intrabank ATM Networks

Electronic funds transfers using ATM cards for book entry account transfers at the same bank.

70 banks provide this facility

-

Shared ATM Network – International Brands

 

MasterCard International (Cirrus)

9 banks are Cirrus members, settlement processed through member accounts at one member bank.

 

Visa International (Plus)

10 banks are Plus members, settlement processed through member accounts at one member bank.

 

Others

-

Debit Card Networks – National Brands

Electronic transfer at Point of Sale (POS)

BCA (Debit BCA)

16 banks are members of Debit BCA

 

Kartuku

2 banks are members, settlement processed through member accounts at one member bank.

Debit Card Networks – International Brands

 

Visa International (Visa Electron)

10 banks are members, settlement processed through member accounts at one member bank.

 

MasterCard International (Maestro)

9 banks are members, settlement processed through member accounts at one member bank.

Credit Card Networks

Electronic payment by credit card

Visa International

15 banks are members, settlement processed through member accounts at one member bank.

 

MasterCard International

13 banks and 1 NBFI are members, settlement processed through member accounts at one member bank.

 

JCB

2 banks are members, settlement processed through member accounts at one member bank.

 

Diners Club

1 member (Diners)

 

 

 

Funds transfers/remittances – domestic networks

 

PT Pos Indonesia (postal money orders)

-

 

Courier companies providing cash delivery services

-

 

Other companies specialising in remittance services

-

 

Money changers offering remittance services

-

 

Shops and travel agents also offering remittance services

-

 

Others (not identified)

 

Funds transfers/remittances  - international networks

Funds transfers/remittances with receipt in cash or beneficiary account - international payments only.

Western Union

One bank, PT Pos Indonesia and non-bank companies operating as agents for Western Union

 

 

Money Gram

Some banks and non-bank companies, such as shops and travel agents, operating as agents for Money Gram.

 

 

Others (not identified)

-


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