Indonesia Establishes its National Payment Gateway

The Indonesian central bank, Bank Indonesia ("BI") recently issued BI Regulation No. 19/8/PBI/2017 on National Payment Gateway ("BI Regulation") as part of its effort to actualize the independency of Indonesia's national payment system, especially in respect of all financial transactions carried-out in Indonesia. By issuing the BI Regulation, BI started the process to establish the National Payment Gateway ("NPG") which has two (2) key objectives: (i) the interconnectivity of all existing payment channels; and (ii) the interoperability of various payment instruments which are currently existing and used in Indonesia.