Indonesia Legal Update: BI Regulations On Payment Systems

Indonesia's central bank, Bank Indonesia ("BI"), has issued several regulations that reform the legal framework for payment systems in Indonesia.

BI Regulation No. 22/23/PBI/2020 concerning Payment Systems ("BI Reg 22/2020"), issued on July 1, 2021, is an umbrella regulation that reclassifies payment system providers into:

1. Payment System Providers (Penyedia Jasa Pembayaran  or "PJP"), which are bank or non-bank entities that provide services to facilitate payment transactions for service users; and
2. Payment System Infrastructure Providers (Penyelenggara Infrastruktur Sistem Pembayaran  or "PIP"), which provide infrastructure to conduct the transfer of funds for the interest of members.