Thursday, April 17, 2014

New e-money regulations in Indonesia.

Bank Indonesia yesterday announced the release of long-awaited new rules on electronic money  . Since the termination of the Branchless Banking pilots in 2013, and the subsequent shift in regulatory authority to the newly formed Financial Services Authority (OJK), banks and telcos alike have been waiting for news on how they can use e-money and alternative financial services to reach the huge population of financially excluded in Indonesia.

Although the new rules don’t cover the extension of bank accounts through agents, they do provide much-needed clarity and consolidation of existing e-money regulations. E-money has been growing in Indonesia, but so far the majority of transactions are of closed-loop card-based transactions, especially for public transport and toll roads. The extension of financial services to rural and underserved populations has not yet eventuated, largely due to onerous requirements on the ability to cash-out or withdraw funds.
The new regulations have a multi-tier approach to appointing agents for cashing out.  There is good news for the Book 4 banks (BNI, Mandiri, BRI, BCA) in that they can appoint individuals as agents to provide a wide variety of services for e-money. The news is not so good for other e-money issuers, including smaller banks and telcos, in that their agents must be incorporated legal entities.  This will prove frustrating in a country where the majority of businesses lack formal registration, especially as these small businesses have proven to be the best agents in other markets.
However, other components of the regulation are more progressive. Agent exclusivity is forbidden, which is seen as an important step in working towards an interoperable and universally accessible system. Service providers will also be able to determine their own fees, although BI has retained the ability to cap these if needed.

The new regulations are available in Bahasa Indonesia only http://www.bi.go.id/id/peraturan/sistem-pembayaran/Default.aspx. I will post more details on this blog once I have a translation, and welcome any questions or discussions.
Michael Joyce is a policy advisor working with the Government of Indonesia on mobile money and financial inclusion. He has been working on mobile money in Asia for six years, specialising in risk, regulation and operations. The views on this blog are his own and do not represent the views of the Government of Indonesia or constitute legal advice. 



5 comments:

  1. Great insights on the Agent Interoperability outline. Awaiting to see the translated version to get insights.

    ReplyDelete
  2. My name is KARLA LOVELL from Texas in the USA. For a very long time, i was deep into financial mess untill a friend of mine told me about CONSUMER LOAN FIRM and how she was helped by the company with an Xmas loan at a very low interest rate of 2% and better repayment schedule.She further stressed that they can help me out of my financial difficulties too.Though i never believed her because i have tried lots of BANKS/CREDIT lenders who could not help me out because of my poor credit score.She advised i should give it a try to be convinced,so i mailed them via consumerloanfirm@gmail.com .Behold it went well and after my explanation, they took me through the loan process and granted me the $67,000,00 as applied with ease on 26th of October 2017, i have a business of mine and my xmas bills became very much easy.

    ReplyDelete
  3. Good-day, I'm Josef Lewis. A reputable, legitimate & accredited lender. We give out loan of all kinds in a very fast and easy way, Personal Loan, Car Loan, Home Loan, Student Loan, Business Loan, Inventor loan, Debt Consolidation. etc

    Get approved for a business or personal loans today and get funds within same week of application. These personal loans can be approved regardless of your credit and there are lots of happy customers to back up this claim. But you won’t only get the personal loan you need; you will get the cheapest one. This is our promise: We guarantee The lowest rate for all loans with free collateral benefits.

    We strive to leave a positive lasting impression by exceeding the expectations of my customers in everything I do. Our goal is to treat you with dignity and respect while providing the highest quality service in a timely manner. No social security Number required and no credit check required, 100% Guaranteed. Kindly respond immediately using the details below if interested in a loan and be free of scams..

    Email: progresiveloan@yahoo.com
    Call/Text +1(603) 786-7565 thanks



    ReplyDelete
  4. Product Detail

    Do you need a loan?
    Does your firm, company or industry need financial assistance?
    Do you need finance to start your business?
    Do you need personal loan?
    Loan for your home improvements
    Mortgage loan
    Debt consolidation loan
    Commercial loan
    Education loan
    Car loan
    Loan for assets.
    Contact us today with for your loan request. abubakarloanservice@gmail.com
    Phone number:+919818603391 (Call/Whats app)

    ReplyDelete