The New Regulation on e-Money
On 4 May 2018, the Central Bank of Indonesia (Bank Indonesia) issued a regulation on electronic money or e-money. The new regulation emerges as Bank Indonesia Regulation No.20/6/PBI/2018 concerning Electronic Money (“PBI No. 20/2018”).
PBI No. 20/2018 covers several areas, including e-money authorization and agreement, general specifications and liabilities, controlling shareholders, implementation of risk management, information system security standards, interconnection and interoperability, and Digital Financial Sevices (Layanan Keuangan Digital/LGD).
PBI No. 20/2018 classifies electronic money into 3 (three) categories, as follows:
Any parties that are willing to be theorganizers of the e-money require authorization from Bank Indonesia. The provisions do not apply to those who act as arranger for the closed loop e-money publisher with an amount of total ‘float fund’ less than 1 billion rupiah.
Authorization requests to be an e-money arranger will be held according to the grouping of the Payment System Service Arranger (Penyelenggara Jasa Sistem Pembayaran/PJSP),which consists of front end and back end arranger group. It is to be noted that each party can only be an electronic money arranger within the same Payment System Service Arranger group.