Regulation of Bank Indonesia No. 19/8/PBI/2017 on National Payment Gateway - Bank Sentral Republik Indonesia
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September 21, 2020
Regulation of Bank Indonesia No. 19/8/PBI/2017 on National Payment Gateway
Effective Date
22 June 2017
1.    Regulation of Bank Indonesia on National Payment Gateway (RBI NPG) is issued by considering:
a.     to realize smooth, safe, efficient, and reliable national payment system and by observing more advanced, competitive, and integrated information, communication, technology, and innovation, the national payment system policy must be directed at development of integrated and sustainable resilience and development as well as competitiveness increase.
b.     to build resilience, conduct integrated and sustainable development, and increase competitiveness of national payment system, management of infrastructure, institution, instruments, and mechanism of national payment system is required in a system capable of processing all domestic retail payment transactions in interconnection and interoperability.
c.     processing of domestic retail payment transactions in interconnection and interoperability within the implementation of nationalpayment gatewayaims to fulfill public need for cashless transactions by using retail payment instruments and to facilitate and expand public acceptance to national cashless movement.
2.    The scope of this RBI includes:
a.     objective and scope of NPG;
b.     parties to NPG;
c.     operators of NPG;
d.     parties connected with NPG;
e.     implementation of NPG;
f.      report;
g.     other provisions and transitional provisions; and
h.     supervision and sanction.
3.    Bank Indonesia establishes NPG policy through Switching interconnection to realize interoperability of national payment system. The scope of NPG includes domestic payment transactions, including Switching interconnection, interconnection and interoperability of payment canals, and interoperability of payment instruments.
4.    Parties to NPG include NPG operators and parties connected with NPG.
5.    NPG operators include:
a.     Standard Agency;
b.     Switching Agency;
c.     Services Agency.
6.    Parties connected with NPG include:
a.     Issuer;
b.     Acquirer;
c.     Payment Gateway operator; and
d.     Other parties determined by Bank Indonesia.
7.    Criteria/Requirements for NPG Operators:
a.     Standard Agency:
                 i.   representative of national payment system industry;
                ii.   established under the law of Indonesia;
               iii.   has the competency to prepare, develop, and manage the Standard for interconnection and interoperability of various payment instruments and canals.
b.     Switching Agency:
                 i.   has obtained permit as a switching operator by BI;
                ii.   has implemented domestic payment transaction processing by using infrastructures owned in Indonesia;
               iii.   has met share ownership of at least 80% (eighty percent) by an Indonesian citizen and/or Indonesian legal entities. If foreign ownership exists in a Switching Agency, the foreign ownership calculation includes direct and indirect ownership according to Bank Indonesia’s assessment. Any Switching Agencies, which have obtained the approval of Bank Indonesia, remain obliged to meet the share ownership percentage. They must also request the approval of Bank Indonesia if they change their equity and/or shareholder structure;
               iv.   has the ability and capacity to perform Switching function in NPG;
                v.   has paid-up capital of at least Rp 50,000,000,000.
c.     Services Agency:
                 i.   is established under the law of Indonesia as a limited liability company;
                ii.   has the ability and capacity to perform Services functions in NPG;
               iii.   the shares are jointly owned by:
               iv.   the Switching Agency;
                v.   Commercial Bank by Business Activity (BUKU) 4 (four) whose majority shares are owned by an Indonesia citizen and/or Indonesian legal entity. Such share ownership by may be conducted gradually according to the readiness of each Bank.
8.     In addition to meeting the criteria or requirements, parties intending to become an NPG operator must obtain a decision as a Standard Agency or Services Agency and approval for a Switching Agency.
9.     To process the application for decision as a Standard Agency and Services Agency and approval for a Switching Agency, Bank Indonesia will conduct administrative review, applicant eligibility analysis, and applicant examination if necessary.
10.  A Switching Agency may cooperate with any Switching operator outside of NPG provided that they have obtained the approval of Bank Indonesia.
11.  For implementation of interconnection and interoperability, parties connected with NPG must comply with and apply the Standard determined by Bank Indonesia and managed by Standard Agencies and comply with the provisions determined by Services Agencies.
12.  Parties connected with NPG must be connected by becoming a member of at least 2 (two) Switching Agencies, except for instruments with mutual interoperability without through a Switching Agency.
13.  Switching Agencies and Services Agencies must process final settlements in Bank Indonesia.
14.  Any domestic payment transactions must be processed through NPG.
15.  Parties connected with NPG in the forms of commercial banks and sharia banks for ATM and/or debit cards must be connected with at least 2 (two) Switching Agencies no later than 30 June 2018.
16.  NPG operators and parties connected with NPG must comply with the provisions of Bank Indonesia on national branding and price scheme policy and must provide service feature for payment transaction to be processed through NPG.
17.  Every NPG operator must submit reports to Bank Indonesia, which consist of periodic reports and incidental reports, and submission of reports by parties connected with NPG refers to the provisions of Bank Indonesia on implementation of payment transaction processing.
18.  Bank Indonesia conducts direct and indirect supervision on NPG operators. If necessary, Bank Indonesia will conduct direct supervision of parties cooperating with NPG operators.
19.  NPG operators, which breach the provisions of this RBI, will be imposed with administrative sanctions in the forms of written warning, fine, temporary termination of the entire activity, and/or revocation of decision as and/or approval for NPG operators.
20. Other provisions specify the followings:
a.     Bank Indonesia may establish a certain policy to make the decision and/or grant the approval for NPG operators based, among others, on the following considerations:
)      improve national efficiency;
ii)     support national policy;
iii)    maintain public interest;
iv)    maintain industrial growth; and
v)     maintain sound business competition.
b.     The national chip technology standard for ATM and/or debit cards set by Bank Indonesia under the provisions of Bank Indonesia on payments by cards is established as the Standard for ATM and/or debit cards to be used in NPG.
c.     Any parties, who operate the national chip technology standard for ATM and/or debit cards shall be determined as Standard Agencies.
21.  Transitional provisions are specified as follows:
a.     Any party, which has obtained the permit as a principal prior to the enforcement of this Regulation, may submit an application for approval as a Switching Agency according to the principal permit they have obtained no later than 3 (three) months as of the enforcement of this RBI, provided that the party have met the following criteria:
i)    has implemented processing of domestic payment transactions by using the infrastructure owned in Indonesia;
ii)   meets the minimum share ownership of 80% (eighty percent) owned by an Indonesian citizen and/or Indonesian legal entity; and
iii)  has the ability and capacity to perform Switching functions in NPG.
b.     Prior to establishment of Services Agencies, all duties and authorities of Services Agencies shall be performed by parties appointed by Bank Indonesia by considering feedbacks from payment system industry.
22.  Further provisions are specified in the Regulation of Members of Board of Governors.


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