Bank Indonesia Launches National Payment Gateway - Bank Sentral Republik Indonesia
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August 13, 2020

No. 19/90/DKom

Bank Indonesia launches National Payment Gateway (NPG) to manifest interconnection between switching and interoperability of national payment system, today (4/12), in Jakarta. The NPG is launched by the Governor of Bank Indonesia Agus D.W. Martowardojo, together with the Coordinating Minister of Economic Affairs Darmin Nasution, Minister of SOE Rini Soemarno, Minister of Social Affairs Khofifah Indar Parawansa, Minister of Finance Sri Mulyani, and Minister of Communication and Information Rudiantara.

NPG implementation has three main targets: first, to create a payment system ecosystem which is interconnected, interoperable, and capable of processing transactions, including authorization, clearing, and settlements domestically. Second, to improve consumer protection among others through security of customer's transaction data in every transaction. Third, to ensure availability and integrity of transaction data in national payment system in order to support effectiveness of monetary policy transmission, efficiency of intermediation, and resilience of financial system. In addition, NPG also functions as the backbone to give full support for the Government's programs, including the extension of cashless social support, electronification of toll roads and public transportation, financial inclusion and development of electronic-based national trade system as mandated in Presidential Regulation No. 74 of 2017 on Road Map of E-Commerce. It is said by the Governor of Bank Indonesia, Agus D.W. Martowardojo, in his speech.

To achieve the target, Bank Indonesia has issued Regulation of Bank Indonesia No.19/8/PBI/2017 dated 21 June 2017 and Regulation of Members of Board of Governors No.19/10/PADG/2017 dated 20 September 2017 on National Payment Gateway. Through the policy in the regulation, it is expected that infrastructure sharing will be created; thereby improving the utilization of ATM and EDC terminals, and therefore, infrastructure investment cost may be reshifted to fund loans, which will eventually pose positive impacts on economic growth. It is also expected that NPG implementation may reduce complexity of connections from bilateral between parties to centralized in NPG. In addition, through NPG, people may transact from any banks by using any instruments through any channels.

As the onset of NPG's existence, people are introduced to ATM/debit cards with a national logo used for domestic transactions and accepted in all payment terminals of domestic merchants. The national logo constitutes the identity of national sovereignty in retail payment system. By using such logo, ATM/debit cards are more widely accepted and used by people without disregarding payment instruments with international logos.

In the NPG launching, a Consortium Agreement on Establishment of Services Institutions is also signed between four Book Banks 4 and four NPG switching institutions, and a Cooperation Agreement (CA) to support NPG implementation, namely CA on Switching Interconnection between four NPG switching institutions, CA on Interoperability of Debit Cards between seven banks, and CA on Electronic Money between four electronic money issuers.

Jakarta, 4 December 2017
Communication Department

Head of Department



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