Bank Indonesia sets chip technology standard for ATMs, debit cards

Bank Indonesia has set National Standard Indonesian Chip Card Specification (NSICCS) as the country’s technology benchmark for ATMs and debit cards of all card providers across the country.

The regulation was officially implemented during a meeting attended by Bank Indonesia deputy governor Sugeng, bankers and the Indonesia Payment Systems Association (ASPI) on Wednesday in Jakarta.

The central bank also appointed ASPI to oversee the implementation of the NSICCS and to develop it through observation of several aspects, such as security and technology development.

“The implementation of a standard was aimed at increasing the security of transactions and encouraging the creation of an interoperability instrument, which was in line with the National Payment Gateway program,” the central bank wrote in an official statement.

Bank Indonesia through its letter, No.17/52/DKSP on the requirement of a six digit PIN number for all debit and ATM cards utilizing magnetic stripe technology, tried to improve on the security aspects of transactions.

The NCICCS technology will not only be implemented in the ATM and debit cards, but also in the system, which processes transactions within the cards. The full implementation is expected to finish at the end of 2021.

The implementation of the NCICCS is part of an ongoing effort to mitigate fraud and align ATM and debit card standards in Indonesia with the best practices on the international level, Bank Indonesia wrote.