In terms of regulatory reform, policy transformation is key to consolidate the national payment system industry, while streamlining licensing procedures. To that end, Bank Indonesia is strengthening the Bank Indonesia Payment System Regulation issued at the end of 2020, with promulgation of the Payment Service Provider PBI (PJP) and the Payment Infrastructure Provider PBI (PIP) on 1st July 2021.
The two BI regulations intend to strengthen the Indonesian payments ecosystem end-to-end and encourage healthy business practices through industry collaboration to accelerate an inclusive digital economy and finance. Licensing has been simplified by applying principle-based rules and granting permits to groups of payment service types rather than the previous arrangement with rigid (rules-based) requirements for each service type.