BI Revises Regulation on E-Money
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Bank Indonesia (BI) will make another revision to regulation on electronic money and introduce electronic wallet in the Bank Indonesia Regulation. The new regulation on the payment transaction processing is expected to be finalized in November 2016.
Bank Indonesia deputy governor Ronald Waas said that one of the revision points is related to the expansion of electronic money basis. Currently, Ronald revealed, there are two types of electronic money, namely server-based and card-based electronic money. BI is considering adding gadget-based money as a new category.
“Currently we have Samsung Pay and Apple Pay. They don’t use cards,” Ronald said in Jakarta on Wednesday, November 9, 2016.
Ronald explained that there are two categories of e money, namely Know Your Customer (KYC) and non-Know Your Customer (nKYC).
In the new regulation, BI has planned to require electronic money issuer with total active members of no less than 300,000 to register the electronic money.
“[Electronic money issuer] with below 300,000 users doesn’t need to obtain a permit, but they need to report. In addition, they have to establish a legal entity,” Ronald said.
In terms of minimum balance, Ronald clarified that there would be no revision regarding the matter. The minimum balance for non-registered electronic money is Rp 1 million (US$77), while that for registered one is Rp 10 million (US$770).
Questions & Answers
Q.What new type of electronic money is Bank Indonesia considering for its updated regulation?
What new type of electronic money is Bank Indonesia considering for its updated regulation?
Bank Indonesia is considering adding gadget-based money as a new category within the electronic money framework. This would include services such as Samsung Pay and Apple Pay, which operate without traditional cards.
Q.What is the requirement for electronic money issuers regarding user numbers in the new regulation?
What is the requirement for electronic money issuers regarding user numbers in the new regulation?
Issuers with no less than 300,000 active members will need to register their electronic money. Those with fewer than 300,000 users must report their operations and establish a legal entity, but do not need a permit.
Q.Will the new regulation change the minimum balance requirements for electronic money?
Will the new regulation change the minimum balance requirements for electronic money?
No, there will be no revision to the minimum balance requirements. The minimum balance remains Rp 1 million (US$77) for non-registered electronic money and Rp 10 million (US$770) for registered electronic money.
Q.When is Bank Indonesia expected to finalise the new regulation on payment transaction processing?
When is Bank Indonesia expected to finalise the new regulation on payment transaction processing?
The new regulation on payment transaction processing is expected to be finalised in November 2016. This revision also introduces the concept of an electronic wallet into the Bank Indonesia Regulation.
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