In the spirit of the ASEAN Central Bank Governors’ Meeting in April 2022 (which is one of Indonesia’s G20 Presidency events) and Indonesia’s Payment System 2025 Visions that were introduced in May 2019, Bank Indonesia has launched cooperation with Bank of Thailand that enables consumers and merchants in both countries to make and accept instant cross-border QR payments for goods and services.
To keep up with the momentum of digitalized lending and address the multitude of aspects (including financial inclusion and consumer protection) impacted by this ever-growing practice, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or OJK) has finally issued the long-anticipated regulation that revamped OJK Regulation No. 77/POJK.01/2016 on Information Technology-Based Lending Services (POJK 77). On 4 July 2022, OJK enacted OJK Regulation No. 10/POJK.05/2022 on Information Technology Based Collective Funding Services, updating the requirements for peer-to-peer lending operators and revoked POJK 77.
On the country’s 76th Independence Day, Bank Indonesia announced its collaboration with the Bank of Thailand, Thailand’s central bank, for a trial of a cross-border QR payment linkage that is targeted to go live in Q1 2022.
Happy New Year 2021! We hope that this year things will get better.
Bank Indonesia has issued Regulation No.22/23/PBI/2020 on Payment Systems (“Payment System Regulation”), which is an “umbrella” regulation for the payment system industry. The issuance of this regulation is an implementation of the 2025 Indonesia Payment System Blueprint, which we outlined in our previous client alert. This “umbrella” regulation restructures the regulatory framework of payment systems, including the reclassification of activities of payment system operators. Bank Indonesia’s approach in outlining the rules introduced in this regulation appears to be principle-based and strategic. The technical and operational details of how the rules are supposed to be observed will be outlined in future Bank Indonesia implementing regulations. We anticipate that those will be issued in the coming months, so keep an eye on this space.