Bank Indonesia Issues Regulation on Financial Technology Implementation​ - Bank Sentral Republik Indonesia
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February 28, 2020

No. 19/93/DKom ​

Bank Indonesia issues a regulation on financial technology to encourage innovations and support the establishment of financial technology ecosystem useful to the economy by observing the principles of consumer protection, risk management, and prudence. The regulation on arrangement, supervision, and monitoring of financial technology implementation is specified in Regulation of Bank Indonesia No. 19/12/PBI/2017 on Financial Technology Implementation dated 29 November 2017. In the regulation, a Financial Technology Operator in payment system must register with Bank Indonesia. The registration shall be exempted for Payment System Service operators, which have obtained permits from Bank Indonesia and/or Financial Technology operators under the authority of other agencies. However, Payment System Service operators remain obliged to submit information to Bank Indonesia on new products, services, technology, and/or business models which meet the Financial Technology criteria.

To boost development of innovations in financial technology, Bank Indonesia will determine the products, services, technology, and/or business models of registered Financial Technology Operators to be tested in the Regulatory Sandbox. Regulatory Sandbox is a space of limited test on a product, service, technology, and/or business model of a Financial Technology Operator. In the Regulatory Sandbox, a Financial Technology Operator and Bank Indonesia conduct joint monitoring and evaluation of the product, service, technology, and/or business model of the financial technology. It aims to give space for Financial Technology Operators to further ensure that their products, services, technology, and/or business models have met the applicable criteria and regulations.

Financial Technology Operators registered with Bank Indonesia must meet several main requirements, namely apply consumer protection principle, maintain confidentiality of consumer data and/or information, including data and/or information of transactions, and apply the principles of risk management and prudence. Other obligations are to use rupiah in every transaction within the Republic of Indonesia, to apply the principle of anti-money laundering and counter-terrrorism financing, and comply with other laws and regulations. In addition, Financial Technology Operators may not conduct payment system activities by using virtual currencies.

The Regulation of Bank Indonesia on Financial Technology Implementation is further implemented in Regulation of Members of Board of Governors No. 19/14/PADG/2017 on Regulatory Sandbox for Financial Technology and Regulation of Members of Board of Governors No. 19/15/PADG/2017 on the Procedures for Registration, Information Submission, and Monitoring of Financial Technology Operators.

Through the regulation, Bank Indonesia expects that sound financial technology ecosystem may be consistently encouraged to support sustainable and inclusive national economic growth by maintaining monetary stability, financial system stability, as well as efficient, smooth, safe, and reliable payment system.

Jakarta, 7 December 2017
Communication Department

Head of Department



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