The issuance of Bank Indonesia Regulation 8/29/PBI/2006 dated 20 December 2006 marks a paradigm shift in the handling of cheque/bilyet giro defaulters recorded in the Blacklist. In the past, this blacklisting applied on a local level only. Now, with the operation of nationwide clearing, the black list can also be maintained on a national scale following the nationwide integration of the blacklist database. That means that in the past, customers transferring funds through clearing in different areas would be checked against the blacklist for the local clearing area, but now this process is administered on a national scale. The extension of this coverage is expected to reduce the incidence of bad cheques/bilyet giro.
Another new paradigm involves the method for applying the blacklist sanction. BI no longer administers and publishes the blacklist, but the blacklisting is performed by banks under a self-assessment system. The self-assessment is intended to ensure more accurate publication of the list of bad cheques/bilyet giro, including the blacklist. There are also differences in how the blacklist sanction is applied. Until now, defaulters have been blacklisted only after drawing three or more bad cheques/bilyet giro on the same account-operating bank within a six month period.
Needless to say, intensive preparations and information dissemination to customers on the new paradigm are essential. Although BI issued the regulation at the end of 2006, the regulation will only take effect from mid-2007. With the nationwide operation of the blacklist, bank customers are expected to exercise greater care in managing their liquidity. Banks will also be more selective in accepting customers and more attentive to keeping customers informed of their obligations. Most importantly, this measure will strengthen public confidence in the use of cheques and bilyet giro for payment.