SUMMARY OF REGULATION OF BANK
INDONESIA
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Regulation
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Regulation of Bank
Indonesia No. 19/8/PBI/2017 on National
Payment Gateway
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Effective
Date
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22 June 2017
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Summary
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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.
