BANK INDONESIA REGULATION NUMBER 18/40/PBI/2016 …intr.insw.go.id/files/ecommerce/7. Regulation of BI... · to support the operations of payment system service activities. 5. Switching

BANK INDONESIA REGULATION

NUMBER 18/40/PBI/2016

CONCERNING

OPERATION OF PAYMENT TRANSACTION PROCESSING

BY THE GRACE OF GOD THE ALMIGHTY

GOVERNOR OF BANK INDONESIA,

Considering: a. whereas the development of technology and information

system continues to bear various innovations, especially

in relation to financial technology (fin-tech) to meet the

public needs, including in the field of payment system

services, whether in terms of instruments, providers,

mechanisms, and infrastructures of payment transaction

processing operations;

b. whereas innovations in the operation of payment

transaction processing need to keep supporting the

creation of a payment system which is smooth, safe,

efficient, and reliable, so arrangements is required

against the providers of payment system services to

complement the existing regulation by putting forward

the fulfillment of prudential principles and adequate risk

management, and with due regard to the expansion of

access, national interest and consumer protection,

including international standards and practices;

c. whereas in order to enhance the resilience and

competitiveness of the national payment system

industry, Bank Indonesia needs to motivate the roles of

the domestic players among others through ownership

structuring of the payment system service providers;

d. whereas the settings on the payment system service

operations in the current regulation needs to continue

being equipped and formulated more comprehensively to

give clearer directions and guidelines to the providers of

payment system services and the support providers of

payment transactions, as well as to the society;

e. whereas based on the consideration as referred to in

letter a up to letter d, it is deemed necessary to establish

Bank Indonesia Regulation concerning the Operation of

Payment Transaction Processing;

In view of: 1. Law Number 23 Year 1999 concerning Bank Indonesia

(State Gazette of The Republic of Indonesia Year 1999

Number 66, Supplement to the State Gazette of The

Republic of Indonesia Number 3843) as amended several

times, most recently by Law Number 6 Year 2009 on the

Enactment of the Government Regulation in Lieu of Law

Number 2 Year 2008 concerning the Second Amendment

to Law Number 23 Year 1999 concerning Bank Indonesia

to become Law (State Gazette of The Republic of

Indonesia Year 2009 Number 7, Supplement to the State

Gazette of The Republic of Indonesia Number 4962);

2. Law Number 11 Year 2008 concerning Electronic

Transaction and Information (State Gazette of the

Republic Indonesia Year 2008 Number 58, Supplement

to the State Gazette of the Republic of Indonesia Number

4843);

3. Law Number 3 of 2011 concerning Fund Transfer (State

Gazette of the Republic of Indonesia Year 2011 Number

39, Supplement to the State Gazette of the Republic of

Indonesia Number 5204);

DECIDES:

To issue: BANK INDONESIA REGULATION CONCERNING OPERATION

OF PAYMENT TRANSACTION PROCESSING.

CHAPTER I

GENERAL PROVISION

Article 1

In this Bank Indonesia Regulation what is meant by:

1. Bank is bank as referred to in law that governs banking

and sharia bank as referred to in law that governs sharia

banking.

2. Non-Bank Institution is non-bank business entities

which incorporated and established under Indonesian

law.

3. Payment System Service Provider is Bank or Non-Bank

Institution organizing payment system service activities.

4. Support Provider of Payment Transactions hereinafter

referred to as Support Provider is the parties that provide

services to the Payment System Service Provider in order

to support the operations of payment system service

activities.

5. Switching is an infrastructure that functions as the

center and/or hub for routing payment transaction data

through a network that uses card-based payment

instrument, electronic money, and/or funds transfer.

6. Payment Gateway is electronic services that allow

merchants to process payment transactions using card-

based payment instrument, electronic money, and/or

Proprietary Channel.

7. Electronic Wallet is electronic services to store data of

payment instruments among others card-based payment

instrument and/or electronic money, which can also

accommodate funds for making payments.

8. Proprietary Channel is a payment channel developed and

owned by Bank exclusively for the benefits of their own

customers which among others use technology-based of

short message service, mobile, web, subscriber identity

module tool kit, and/or unstructured supplementary

service data.

9. Switching Provider is Bank or Non-Bank Institution

operating Switching activities.

10. Payment Gateway Provider is Bank or Non-Bank

Institution operating Payment Gateway activities.

11. Electronic Wallet Provider is Bank or Non-Bank

Institution operating Electronic Wallet.

12. Principal is the principal as referred to in Bank Indonesia

regulation that governs card-based payment instrument

and Bank Indonesia regulation that governs electronic

money.

13. Issuer is the issuer as referred to in Bank Indonesia



money.

14. Acquirer is the acquirer as referred to in Bank Indonesia



money.

15. Clearing Provider is the clearing provider as referred to in

Bank Indonesia regulation that governs card-based

payment instrument and Bank Indonesia regulation that

governs electronic money.

16. Settlement Provider is the settlement provider as referred

to in Bank Indonesia regulation that governs card-based



17. Fund Transfer Provider is the fund transfer provider as

referred to in Bank Indonesia regulation that governs

fund transfer.

CHAPTER II

PROVIDERS IN THE PROCESSING OF PAYMENT

TRANSACTIONS

Article 2

(1) Processing of payment transactions shall be conducted

by the Payment System Service Provider and Support

Provider.

(2) The processing of payment transactions as referred to in

paragraph (1) covers the activities of:

a. pre-transaction;

b. authorization;

c. clearing;

d. settlement; and

e. post-transaction.

Article 2

(1) Payment System Service Provider as referred to in Article

2 paragraph (1) consist of:

a. Principal;

b. Switching Provider;

c. Issuer;

d. Acquirer;

e. Payment Gateway Provider;

f. Clearing Provider;

g. Settlement Provider;

h. Fund Transfer Provider;

i. Electronic Wallet Provider; and

j. Other Providers of Payment System Services

determined by Bank Indonesia.

(2) Acquirer as referred to in paragraph (1) letter d and

Payment Gateway Provider as referred to in paragraph (1)

letter e constitute providers which belong to the category

of merchant acquiring services.

(3) Support Provider as referred to in Article paragraph (1)

constitute companies implementing activities among

others:

a. card printing;

b. payment personalization;

c. provision of data center and/or disaster recovery

center;

d. terminal provision;

e. provision of security features of payment instrument

and/or payment transaction;

f. provision of contactless transaction support

technology; and/or

g. provision of supporting data routing of payment

transaction processing.

(4) Further provision on the Payment System Service

Provider as referred to in paragraph (1) and Support

Provider as referred to in paragraph (3) shall be stipulated

in a Bank Indonesia Circular Letter.

CHAPTER III

LICENSING AND APPROVAL IN THE OPERATION OF

PAYMENT TRANSACTION PROCESSING

Part One

General

Article 4

(1) Each party acts as the Payment System Service Provider

as referred to in Article 3 paragraph (1) must first obtain

license from Bank Indonesia.

(2) The party that has obtained the license as referred to in

paragraph (1) and will carry out:

a. development of payment system service activities;

b. development of products and activities of payment

system services; and/or

c. cooperate with other parties,

must first obtain approval from Bank Indonesia.

Part Two

Licensing

Article 5

(1) The party applying for license to become the Payment

System Service Provider must fulfill the following

requirements:

a. general; and

b. feasibility aspect as the Payment System Service

Provider.

(2) Other than fulfill the requirements as referred to in

paragraph (1), the party applying for license to become

the Principal, Switching Provider, Clearing Provider,

and/or Settlement Provider must be a limited liability

company with at least 80% (eighty percent) of their shares

owned by:

a. Indonesian citizens; and/or

b. Indonesian legal entities.

(3) In the event there is foreign ownership in the Principal,

Switching Provider, Clearing Provider, and/or Settlement

Provider as referred to in paragraph (2), the calculation of

the number of foreign ownership shall include the direct

ownership and indirect ownership.

(4) The party as referred to in paragraph (2) that has

obtained the license as the Principal, Switching Provider,

Clearing Provider, and/or Settlement Provider is

obligated to still fulfill the percentage of shareholding as

referred to in paragraph (2).

Article 6

(1) The Party applying for license to be the Switching

Provider or Payment Gateway Provider must be:

a. a Bank; or

b. a Non-Bank Institution.

(2) Non-Bank Institution as referred to in paragraph (1) letter

b of a limited liability company conducting business

activities in the field of information technology and/or

payment system.

Article 7

(1) The party applying for license to be the Electronic Wallet

Provider must be:

a. a Bank; or

b. a Non-Bank Institution.

(2) Non-Bank Institution as referred to in paragraph (1) letter

b shall be a limited liability company.

Article 8

The obligation to obtain license as referred to in Article 4

paragraph (1) applies for Bank or Non-Bank Institution as

referred to in Article 7 paragraph (1) implementing Electronic

Wallet services with active users already reached or planned

to reach no less than 300,000 (three hundred thousand)

users.

Article 9

(1) The party that will become the Switching Provider and/or

Payment Gateway Provider as referred to in Article 6

and/or the Electronic Wallet Provider as referred to in

Article 7, must fulfill the requirement for feasibility

aspects as the Payment System Service Provider that

consists of:

a. legality and profile of company;

b. legal;

c. operational readiness;

d. security and reliability of system;

e. business feasibility;

f. risk management adequacy; and

g. consumer protection.

(2) For parties that will apply for license to be Electronic

Wallet Provider which can also accommodate funds, the

fulfillment of requirements shall be:

a. risk management adequacy as referred to in

paragraph (1) letter f; and

b. consumer protection as referred to in paragraph (1)

letter g,

must also cover risk management and consumer

protection related to fund management accommodated in

Electronic Wallets.

(3) Further provision concerning the fulfillment of

requirements as Payment System Service Provider as

referred to in paragraph (1) and paragraph (2) shall be

stipulated in a Bank Indonesia Circular Letter.

Article 10

(1) Requirements and procedures for obtaining license to

become Principal, Issuer, Acquirer, Clearing Provider,

and Settlement Provider shall refer to Bank Indonesia


or Bank Indonesia regulation that governs electronic

money.

(2) Requirements and procedures for obtaining license to

become Fund Transfer Provider shall refer to Bank

Indonesia regulation that governs transfers of funds.

Part Three

Approvals

Article 11

(1) Approvals for the development of payment system service

activities as referred to in Article 4 paragraph (2) letter a

shall include:

a. operation of Payment Gateway conducted by the

Payment System Service Provider that have obtained

the license as Issuer and/or Acquirer;

b. operation of Electronic Wallet conducted by the

Payment System Service Provider as follows:

1. Bank; or

2. Non-Bank Institution that have obtained the

license as the Issuer of electronic money;

and/or

c. operation of Proprietary Channel conducted by the

Payment System Service Provider of Banks.

(2) Approvals for the development of products and activities

of payment system services as referred to in Article 4

paragraph (2) letter b shall include the development of

features, types, services, and/or facilities from products

and/or payment system service activities already

ongoing.

(3) Approvals for performing cooperation as referred to in

Article 4 paragraph (2) letter c shall include:

a. cooperation with other Payment System Service

Provider; and/or

b. cooperation with Support Providers.

(4) The parties that have obtained the approvals as referred

to in paragraph (1) must comply with the applicable

provision for Payment Gateway Provider and Electronic

Wallet Provider.

Article12

(1) Approvals granted to the Payment System Service

Provider in the context of development of payment

system service activities as referred to in Article 4

paragraph (2) letter a and development of products and

activities of payment system services as referred to in

Article 4 paragraph (2) letter b shall consider the

fulfillment of requirements including the aspects of:

a. operational readiness;

b. security and reliability of system;

c. implementation of risk management; and

d. consumer protection.

(2) Other than the fulfillment of aspects as referred to in

paragraph (1), Bank Indonesia also consider the results

of supervision toward the performance of Payment

System Service Provider.

Article 13

The approvals granted to the Payment System Service

Provider in the context of cooperation as referred to in Article

4 paragraph (2) letter c shall consider the fulfillment of

requirements that include the aspects of:

a. legality and profile of the company;

b. competence of the party that will be invited to work with;

c. performance;

d. security and reliability of system and also infrastructure;

and

e. legal.

Article 14

(1) Payment System Service Provider shall be responsible for

ensuring the security and smoothness of payment

transaction processing, including in case conducted

through cooperation with the Support Provider.

(2) Payment System Service Provider must conduct

periodical evaluations on the performance of the Support

Provider.

Part Four

Procedures and Processing of License and Approval

Article 15

(1) Banks or Non-Bank Institution that will:

a. apply for license as the Payment System Service

Provider as referred to in Article 4 paragraph (1); or

b. apply for approval in the context of development of

payment system service activities, development of

products and activities of payment system services,

and/or cooperation as referred to in Article 4

paragraph (2),

must submit the applications in writing in Indonesian

Language to Bank Indonesia accompanied by supporting

documents for the fulfillment of aspects as referred to in

Article 9, Article 12, and Article 13.

(2) In order to process the application for license as referred

to in paragraph (1) letter a, Bank Indonesia shall

conduct the following:

a. administrative research;

b. business feasibility analysis; and

c. examination against Banks or Non-Bank

Institution.

(3) In order to process the applications for approval as

referred to in paragraph (1) letter b, Bank Indonesia shall

conduct the following:

a. administrative research;

b. analysis to the performances of Bank or Non-Bank

Institution; and

c. examination against Bank or Non-Bank Institution,

if required.

(4) Based on the process results as referred to in paragraph

(2) and paragraph (3), Bank Indonesia shall determine

the decision to:

a. accept; or

b. reject,

the application for license or for approval submitted.

(5) Bank Indonesia can provide convenience to the Payment

System Service Provider that have obtained permission

for the cooperation approval process as referred to in

paragraph (1) letter b for using and expanding the use of

non-cash payment instrument for programs related to

the national policy.

(6) The convenience as referred to in paragraph (5) shall be

given by still paying attention to the risks of

implementing payment system service activities.

Part Five

Obligations for Foreign Parties

Article 16

Foreign parties conducting payment system services in the

territory of the Unitary State of The Republic of Indonesia

and/or in cooperation with the Payment System Service

Provider must comply with this Bank Indonesia Regulation

and the provisions of laws and regulations.

Part Six

Policy on Licensing and/or Approval

Article 17

(1) Bank Indonesia is authorized to establish a policy on

licensing and/or approval for the operation of payment

system services.

(2) The establishment of policy as referred to in paragraph

(1) shall be based on the considerations to:

a. maintain the national efficiency;

b. support the national policy;

c. maintain the public interest;

d. maintain the industry growth; and/or

e. maintain a healthy business competition.

CHAPTER IV


Article 18

(1) In the operation of payment transaction processing, each

Payment System Service Provider must:

a. implement risk management effectively and

consistently;

b. implement standards of information system

security;

c. implement the processing of payment transactions

domestically;

d. implement consumer protection; and

e. comply with the provisions of laws and regulations.

(2) The obligations for processing payment transactions

domestically as referred to in paragraph (1) letter c shall

be implemented as follows:

a. for the Payment System Service Provider processing

transactions of card-based payment instrument,

shall subject to the provisions of Bank Indonesia

that governs card-based payment instrument; and

b. for the Payment System Service Provider processing

transactions of electronic money and/or

transactions of other payment system, shall subject

to the provisions that will be determined later by

Bank Indonesia.

Part One

Implementation of Risk Management

Article 19

(1) Implementation of risk management effectively and

consistently in the operation of payment transaction

processing shall cover:

a. active supervision of management;

b. adequacy of policies and procedures as well as

organizational structure;

c. risk management function and implementing

human resources; and

d. internal control.

(2) Implementation of risk management by the Principal,

Issuer, Acquirer, Clearing Provider, and Settlement

Provider other than refers to the implementation of risk

management as referred to in paragraph (1) also shall

refer to the provision of risk management as referred to

in Bank Indonesia Regulation that governs the operation

of card-based payment instrument activities and/or

Bank Indonesia Regulation that governs electronic

money, as well as other provisions of laws and

regulations.

(3) Implementation of risk management by the Fund

Transfer Provider other than refers to the

implementation of risk management as referred to in

paragraph (1) shall also refer to the provision of risk

management implementation as referred to in Bank

Indonesia Regulation that governs fund transfer and

other provisions of laws and regulations.

Part Two

Information System Security

Article 20

(1) Implementation of standards of information system

security by Principal, Issuer, Acquirer, Clearing

Provider, Settlement Provider, and Fund Transfer

Provider shall refer to the regulation of Bank Indonesia

that governs the operation of card-based payment

instrument activities, regulation of Bank Indonesia that

governs electronic money, and/or regulation of Bank

Indonesia that governs fund transfer.

(2) Implementation of standards of information system

security by Switching Provider, Payment Gateway

Provider, Electronic Wallet Provider, and Bank operating

Proprietary Channel at least is for:

a. fulfillment of certification and/or security

standards and system reliability generally accepted

or determined by Bank Indonesia or related

authorities/institutions;

b. maintenance and improvement of technology

security; and

c. audits implementation conducted periodically at

least once in 3 (three) years or every time there is a

significant change.

(3) The fulfillment of certification and/or standards of

security system as referred to in paragraph (2) letter a

for Switching Provider at least shall be for:

a. securing data and information related to the

processed payment transactions; and

b. securing network.



for Payment Gateway Provider at least shall be for:

a. securing data and information related to the

processed payment transactions; and

b. securing network;

c. implementation of fraud detection system.



for Electronic Wallet Provider at least shall be for:

a. securing data and information of users as well as

data and information of payment instrument stored

in Electronic Wallet;

b. system and procedures for activation and use of

Electronic Wallet; and

c. implementation of fraud detection system.

Part Three

Implementation of Electronic Wallet

Article 21

(1) In the event there is a request for refund on the

cancellation of payment transactions, Electronic Wallet

Provider must immediately make the refund to the users

of Electronic Wallet.

(2) Electronic Wallet Provider must own a procedure to

ensure the implementation of the refund as referred to

in paragraph (1).

(3) The fund derived from the refund as referred to in

paragraph (1) must immediately be refunded to the

origin of source of fund used for making payment

transactions.

Article 22

(1) Other than required to fulfill the provision as referred to

in Article 18, the Electronic Wallet Provider operating

Electronic Wallet that can be used to store data of

payment instrument and to accommodate funds, are

obligated to:

a. ensure that the use of funds in Electronic Wallet is

only for the purpose of payments;

b. comply with the regulation of Bank Indonesia

concerning the limit of fund value that can be

accommodated in the Electronic Wallet;

c. ensure that the funds owned by the users are

available and can be used when making

transactions;

d. place all funds stored in Electronic Wallet in the

form of safe and liquid assets to make sure the

availability of funds as referred to in letter c;

e. ensure that the use of funds is only to meet the

interests of payment transactions by the users of

Electronic Wallet; and

f. implement anti-money laundering and prevention

of terrorism funding programs according to the

provisions of laws and regulations.

(2) The limit of fund value that can be accommodated in

Electronic Wallet as referred to in paragraph (1) letter b

can only be exceeded in the event:

a. there are refunds as referred to in Article 21

paragraph (1); and

b. Electronic Wallet Provider are capable to identify the

excess of fund as a refund.

(3) Placement of all funds stored in the Electronic Wallet as

referred to in paragraph (1) letter d shall be conducted

by:

a. administering the funds stored in the Electronic

Wallet through recording in the immediate liabilities

post or various liabilities for Electronic Wallet

Provider of Bank; or

b. placing the funds stored in the Electronic Wallets

100% (one hundred percent) in commercial banks

in time deposit account, for Electronic Wallet

Provider of Non-Bank Institution.

(4) Further provision concerning the obligations of

Electronic Wallet Provider as referred to in paragraph (1)

shall be governed in a Bank Indonesia Circular Letter.

Part Four

Implementation of Payment Gateway

Article 23

Payment Gateway Provider which in the implementation of

their activities conduct the function to settle the payments to

merchants must:

a. own and run the mechanisms and procedures

concerning:

1. merchant acquisition facilitated by the provision of

Payment Gateway; and

2. settlement of payments to the merchants; and

b. conduct evaluation to the smoothness and security of

payment transactions conducted through the

merchants.

Part Five

Consumer Protection

Article 24

(1) Implementation of consumer protection principles by the

Payment System Service Provider shall refer to Bank

Indonesia regulation that governs consumer protection

of payment system services.

(2) Implementation of consumer protection principles as

referred to in paragraph (1) shall include:

a. fairness and reliability;

b. transparency;

c. protection of consumer data and/or information;

and

d. effective handling and settlement of complaints.

Article 25

Implementation of consumer protection principles as referred

to in Article 24 by the Payment Gateway Provider among

others shall be:

a. adequate provision of information to consumers

concerning the mechanism of payment through Payment

Gateway, including on the use of data and information

of payment instrument in online transactions; and

b. ensuring the delivery of goods and/or services from

merchants to consumers after the consumers making

payments in online transactions.

Article 26

Implementation of consumer protection principles as referred

to in Article 24 by the Electronic Wallet Provider among

others shall be:

a. adequate provision of information to consumers

concerning Electronic Wallet provided including

information on the procedure of refund as referred to in

Article 21; and

b. own and implement the mechanism of handling

complaints of consumers.

Part Six

Compliance with the Provisions of Laws and Regulations

Article 27

Payment System Service Provider other than subject to this

Bank Indonesia Regulation must also comply with the

provisions of laws and regulations, among others provisions

that govern:

a. the obligation to use Rupiah for payment transactions

made in the territory of the Unitary State of the Republic

of Indonesia;

b. trading transactions through electronic system; and

c. implementation of electronic system and transactions.

CHAPTER V

REPORTS

Article 28

(1) Payment System Service Provider are obligated to submit

reports on the operation of payment transaction

processing to Bank Indonesia.

(2) The reports as referred to in paragraph (1) consists of:

a. periodical reports; and

b. incidental reports.

(3) Submission of the periodical reports as referred to in

paragraph (2) letter a consists of:

a. monthly reports;

b. quarterly reports;

c. annual reports; and/or

d. reports on the result of information system audits

from independent auditors conducted periodically

at least 1 (one) time within the period of 3 (three)

years.

(4) Incidental reports as referred to in paragraph (2) letter b

consist of:

a. reports on disruptions in the processing of payment

transactions and the follow-ups that have been

conducted.

b. reports on changes in capital and/or composition of

shareholders as well changes in composition of the

administrators of Payment System Service

Providers.

c. reports on the occurrence of force majeure upon the

implementation of payment transaction processing;

d. reports on the changes in data and information of

documents submitted at the time of application for

license to Bank Indonesia; and

e. other reports required by Bank Indonesia.

(5) Format and procedure for submitting reports as referred

to in paragraph (2) by Principal, Issuer, Acquirer,

Clearing Provider, and Settlement Provider shall refer to

Bank Indonesia regulation that governs card-based



(6) Format and procedure for submitting reports as referred

to in paragraph (2) by the Fund Transfer Provider shall

refer to Bank Indonesia regulation that governs fund

transfer.

(7) Further provision on the format and procedures for

submitting reports as referred to in paragraph (2) by

Switching Provider, Payment Gateway Provider, and

Electronic Wallet Provider shall be governed in a Bank

Indonesia Circular Letter.

Article 29

(1) Electronic Wallet Provider which are not subject to

license obligation as referred to in Article 8 must submit

a report on the operation of Electronic Wallet to Bank

Indonesia.

(2) Further provision concerning the procedure for

submitting reports as referred to in paragraph (1) shall

be governed in a Bank Indonesia Circular Letter.

CHAPTER VI

TRANSFER OF LICENSE OF PAYMENT SYSTEM SERVICE

PROVIDER

Article 30

(1) Transfer of license for implementing activities as

Principal, Issuer, Acquirer, Clearing Provider, and

Settlement Provider shall refer to Bank Indonesia



money.

(2) Transfer of license for implementing activities as Fund

Transfer Provider shall refer to Bank Indonesia

regulation that governs fund transfer.

Article 31


Switching Provider, Payment Gateway Provider, and/or

Electronic Wallet Provider to other parties may only be

conducted in the context of merger, consolidation, or

spin off.


Switching Provider, Payment Gateway Provider, and/or

Electronic Wallet Provider as referred to in paragraph (1),

must first obtain permission from Bank Indonesia.

Article 32

(1) In the event the acquisition of Bank that have obtained

the license as Payment System Service Provider will be

carried out, the concerned Bank must report the

acquisition plan in writing to Bank Indonesia.

(2) In the event the acquisition of Non-Bank Institution that

have obtained the license as Payment System Service

Provider will be carried out, the concerned Non-Bank

Institution must submit application for approval in

writing to Bank Indonesia regarding the acquisition

plan.

(3) The report on the acquisition plan as referred to in

paragraph (1) or application for approval as referred to

in paragraph (2), at least includes information on the:

a. background of acquisition;

b. the party that will conduct acquisition;

c. target of execution time of the acquisition;

d. composition of owners and/or controlling

shareholders, and also composition of shareholding

after the acquisition; and

e. business plan after acquisition, especially related to

the activities of payment system services

implemented.

CHAPTER VII

SUPERVISION

Article 33

(1) Bank Indonesia shall conduct supervision to the

Payment System Service Provider which have obtained

the license from Bank Indonesia covering:

a. direct supervision; and

b. indirect supervision.

(2) In case required, Bank Indonesia shall conduct

supervision to the Support Provider cooperating with the

Payment System Service Provider, including the

Electronic Wallet Provider as referred to in Article 29.

(3) Bank Indonesia can assign other parties for and on

behalf of Bank Indonesia to undertake direct supervision

as referred to in paragraph (1) and/or paragraph (2).

CHAPTER VIII

PROHIBITION

Article 34

Payment System Service Provider are prohibited to:

a. conduct processing of payment transactions using

virtual currency;

b. misuse data and information of customers as well as

data and information of payment transactions; and/or

c. own and/or manage the comparable values with useable

money value beyond the scope of the concerned Payment


CHAPTER IX

SANCTIONS

Article 35

(1) Payment System Service Provider that violate provisions

as referred to in Article 4 paragraph (2), Article 5

paragraph (4), Article 11 paragraph (4), Article 14

paragraph (2), Article 18 paragraph (1), Article 21, Article

22 paragraph (1), Article 23, Article 27, Article 28

paragraph (1), Article 31 paragraph (2), Article 32

paragraph (1), Article 32 paragraph (2), Article 34, Article

40, and/or Article 42 shall be imposed with

administrative sanctions in the form of:

a. warnings;

b. fines;

c. temporary suspension of a part of or the entire

activities of payment system services; and/or

d. license revocation as the Payment System Service

Provider.

(2) Further provision concerning the procedure for

sanctions shall be governed in a Bank Indonesia

Circular Letter.

CHAPTER X

OTHER PROVISIONS

Article 36

In case after the passage of time as referred to in Article 39

or after this Bank Indonesia Regulation coming into force

there are parties that operate payment system services

without Bank Indonesia permission, accordingly Bank

Indonesia is authorized to:

a. convey a written warning; and/or

b. recommend to the competent authorities to:

1. terminate the business activities; and/or

2. revoke the business license granted by the

competent authorities.

Article 37

In addition to imposition of sanctions as referred to in Article

35, Bank Indonesia can ask the of Payment System Service

Provider to conduct or not to conduct anything, suspend a

part of or all activities of payment system services, cancel or

revoke the license or approval granted to the Payment System

Service Provider in case among others:

a. there are results of Bank Indonesia supervision

indicating that the Payment System Service Provider

have not been able to implement the payment system

service activities well;

b. there are written requests or recommendations from the

authorities or the competent supervisory authorities to

Bank Indonesia to suspend the activities of the Payment

System Service Provider;

c. there are legally binding court rulings ordering the

Payment System Service Provider to terminate their

activities; and/or

d. there are applications for cancellation and/or revocation

of licenses submitted by the concerned Bank or Non-

Bank Institution that have obtained the license from

Bank Indonesia.

Article 38

Provided that it has not been governed in and not in a

contravention with this Bank Indonesia Regulation:

a. the implementation of activities as Principal, Issuer,

Acquirer, Clearing Provider, and Settlement Provider

shall be conducted by referring to the regulation of Bank

Indonesia that governs card-based payment instrument

and regulation of Bank Indonesia that governs electronic

money; and

b. implementation of activities as Fund Transfer Provider

shall be conducted by referring to the regulation of Bank

Indonesia that governs fund transfer.

CHAPTER XI

TRANSITIONAL PROVISIONS

Article 39

(1) The parties that have implemented activities of:

a. Switching, Payment Gateway; and/or

b. Electronic Wallet as referred to in Article 8,

prior to this regulation coming into force and have not

obtained the license from Bank Indonesia must apply for

license to Bank Indonesia.

(2) License application as Switching Provider, Payment

Gateway Provider, and/or Electronic Wallet Provider as

referred to in paragraph (1) shall be conducted no later

than 6 (six) months since this Bank Indonesia

Regulation coming into force.

Article 40

Ownership percentage as referred to in Article 5 paragraph

(2) must be met by the parties which prior to this Bank

Indonesia Regulation coming into force:

a. have obtained the license from Bank Indonesia as

Principal, Clearing Service Provider, and/or Settlement

Service Provider; or

b. in the process of licensing and then obtaining the license

from Bank Indonesia,

if after this Bank Indonesia Regulation coming into force, will

make a change of ownership.

Article 41

Requirements and procedures of application for parties filing

for license as Principal, Clearing Provider, and/or Settlement

Provider prior to this Bank Indonesia Regulation coming into

force, shall subject to the Bank Indonesia regulation that

governs card-based payment instrument and Bank Indonesia

regulation that governs electronic money.

Article 42

(1) Bank that have operated Proprietary Channel at the time

this Bank Indonesia Regulation coming into force must

report the referred implementation of activities to Bank

Indonesia to be administered along with the supporting

documents no later than 6 (six) months since this Bank

Indonesia Regulation coming into force.

(2) Payment System Service Provider that have implemented

the development of Payment Gateway and/or Electronic

Wallet activities as referred to in Article 4 paragraph (2)

letter a at the time this Bank Indonesia Regulation

coming into force must report the referred

implementation of activities to Bank Indonesia to be

administered along with the supporting documents no

later than 6 (six) months since this Bank Indonesia

Regulation coming into force.

CHAPTER XII

CLOSING PROVISIONS

Article 43

This Bank Indonesia Regulation shall come into force on the

date of promulgation.

For the purpose of public cognizance, it is ordered that this

Bank Indonesia Regulation be promulgated in State Gazette of

the Republic of Indonesia.

Enacted in Jakarta

on November 8, 2016

GOVERNOR OF BANK INDONESIA,

AGUS D.W. MARTOWARDOJO

Promulgated in Jakarta

on November 9, 2016

MINISTER OF LAW AND HUMAN RIGHTS

REPUBLIC OF INDONESIA,

YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016

NUMBER 236

ELUCIDATION

OF

BANK INDONESIA REGULATION

NUMBER 18/40/PBI/2016

CONCERNING


I. GENERAL

The development of utilization of internet technology and

communication such as smartphone motivates the growth of electronic

commerce business (e-commerce) and financial technology (fintech)

which raises various innovations and involvement of new parties in the

implementation of payment transaction processing, such as Payment

Gateway Provider and Electronic Wallet Provider, as well as Support

Provider such as technology provider companies supporting contactless

transactions.

The existence of new parties in the payment transaction processing

operations also affects the development of infrastructure and

mechanism of payment which has not been regulated specifically in the

current regulation of Bank Indonesia. To ensure that the development

still fulfill the principles of payment system that are safe, efficient,

smooth, and reliable by paying attention to the aspect of consumer

protection, Bank Indonesia imposes license or approval obligation on the

operation of payment system services by the parties that have not been

covered in the current Bank Indonesia regulation. In order to maintain

the sovereignty of the national payment system industry and the

strengthening of consumer protection aspect, particularly in relation to

the security of data and funds of the Indonesian people, an arrangement

of ownership structure of Payment System Service Provider, i.e.

Principal, Switching Provider, Clearing Providers, and Settlement

Provider is required.

In addition to that, to support the security and smoothness of

payment system service operations, Bank Indonesia also has set

obligations to be met by the new Payment System Service Provider, both

in the form of Payment Gateway Provider, Switching Provider and

Electronic Wallet Provider. The obligations that must be met among

others are the obligations on the implementation of risk management,

consumer protection, security standards fulfillment, domestic payment

transaction processing, use of Rupiah, and compliance with other

related provisions of laws and regulations such as the provision that

governs electronic transaction and information as well as

implementation of anti-money laundering and prevention of terrorism

funding. Other than the fulfillment of the said obligations, the processing

of payment transactions needs to be conducted domestically among

others to enhance the self-reliance of the domestic Payment System

Service Provider in order to support the expansion of non-cash

instrument utilization.

In order to ensure equality of arrangements already governed in the

current regulation, such obligations must also be met by the Payment

System Service Provider such as Principal, Issuer, Acquirer, Clearing

Provider, and Settlement Provider as well as Fund Transfer Provider. To

ensure compliance with regulation on the implementation of this

payment transaction processing, Bank Indonesia shall conduct

supervision and shall require the submission of reports by the Payment


In connection with that, it is necessary to make arrangements

toward the operation of payment transaction processing in a Bank

Indonesia Regulation.

II. ARTICLE BY ARTICLE

Article 1

Self-explanatory.

Article 2

Paragraph (1)

In processing payment transaction, the Payment System Service

Provider can cooperate with Support Provider in order to support

the operation of payment transaction processing.

Paragraph (2)

Letter a

Pre-transactions are the initial activities undertaken to

start the processing of payment transactions among others

by selecting consumers, printing cards, personalizing

cards, and providing infrastructure such as terminals or

readers.

Letter b

Authorization is the approval on transactions after the

following activities being conducted, i.e. routing data and

information of payment transactions, verification of the

identities of the parties making payment transactions,

validation on instrument and payment transactions

conducted, as well as ensuring the availability of source of

funds.

Letter c

Clearing is an activity of exchanging and/or processing data

and/or information in order to calculate the rights and

obligations between parties involved in the processing of

payment transactions.

Letter d

Settlement is an activity of settlement which is final and

binding upon financial rights and obligations of each party

involved in the processing of payment transactions.

Letter e

Post-transaction is an activity after the final settlement of a

payment transaction completed such as the printing of the

billing sheet on the completed transaction, the submission

of data and information on payment transactions made by

users, and the process of disputes or consumer complaints

resolution.

Article 3

Paragraph (1)

Letter a

Self-explanatory.

Letter b

In processing payment transactions, Switching Provider

shall perform data and information routing of payment

transactions inter-Payment System Service Provider such

as Issuer and Acquirer.

Letter c

Self-explanatory.

Letter d

Provisions of terminals among others: Automated Teller

Machine (ATM), Electronic Data Capture (EDC), and/or

reader.

Letter e

In processing payment transactions, the Payment Gateway

Provider among others shall perform data and information

routing of payment transactions between merchants and

acquirers.

Letter f

Self-explanatory.

Letter g

Self-explanatory.

Letter h

Self-explanatory.

Letter i

Self-explanatory.

Letter j

What is meant by “Other Payment System Service Provider”

are the parties operating payment system services at the

stage of activities of authorization, clearing and/or

settlement besides Payment System Service Provider such

as Principal, Switching Provider, Clearing Provider,

Settlement Provider, Fund Transfer Provider, and Electronic

Wallet Provider;

Paragraph (2)

In processing payment transactions through various delivery

channels, among others, Electronic Data Capture (EDC), reader,

online point of sales, and Proprietary Channel, the Payment

Gateway Provider shall conduct:

a. routing data of payment transactions from merchants to

Acquirer or Issuer (facilitators); or

b. routing data of payment transactions from merchants to

Acquirer or Issuer and settlement of payments from

Acquirer or Issuer to merchants (merchant aggregators).

Execution of Payment Gateway operations shall be conducted

through the cooperation with:

a. merchants and Acquirer;

b. Acquirer;

c. merchants and Issuer; or

d. Issuer.

What is meant by “merchant acquiring services provider” are the

parties processing payment transaction made through

merchants in the scheme of four-party business model in the

payment transactions involving Issuer, holders/users of the

payment instrument, merchants, and Acquirer;

Paragraph (3)

Payment System Service Provider can use the services of

Support Provider on every activity of payment transaction

processing.

Letter a

Self-explanatory.

Letter b

Self-explanatory.

Letter c

Self-explanatory.

Letter d

Self-explanatory.

Letter e

Self-explanatory.

Letter f

Self-explanatory.

Letter g

Supporting data of payment transaction processing among

other data of billing value for public service payments such

as water and electricity.

Paragraph (4)

Self-explanatory.

Article 4

Self-explanatory.

Article 5

Paragraph (1)

Self-explanatory.

Paragraph (2)

Documents related to the structure and portion of shareholdings

on limited liabilities companies shall be submitted to Bank

Indonesia accompanied by a statement letter containing

confirmation of the truth of data and information submitted.

Paragraph (3)

What is meant by “foreign ownership” is ownership by foreign

citizens or foreign corporations.

Paragraph (4)

Self-explanatory.

Article 6

Paragraph (1)

Self-explanatory.

Paragraph (2)

What is meant by “conducting business activities in the field of

payment system” among others, in the event there are parties

that have not obtained licenses although they already have

readiness to operate payment system service activities.

Article 7

Self-explanatory.

Article 8

What is meant by “active users” are Electronic Wallet users making

payment transactions using Electronic Wallet regularly and/or

making payment transactions using Electronic Wallet at least once

in 1 (one) month.

Article 9

Paragraph (1)

Letter a

Legality aspect and company profile, among others,

documents of company profile, articles of association

including its amendments, business license already owned,

company registration certificate, and approvals from the

related authorities (if any).

Letter b

Legal aspect, among others, the proof of legal document

readiness in the form of a written agreement concept or

written main agreement between the Payment System

Service Provider and other parties.

Letter c

Operational readiness aspect, among others, the proof of

operational readiness in the form of an organizational

structure and human resources readiness, plans for

business facilities and equipment as well as

locations/space that will be used for the operational

activities, technical equipment related to system (hardware

and software) and network that will be used and user

acceptance test for payment system services that will be

implemented (if any).

Letter d

System reliability and security aspects, among others, the

proof of security readiness on the operation of payment

transaction processing among others reports on the result

of information system audit from independent auditors,

procedures of security control, and assessment result of

payment system services that will be implemented.

Letter e

Business feasibility aspect among others the result of

business analysis that at least include information on the

description of market potential, plan of cooperation, plan of

regional operation, cost structure applied in the operation

of payment system services, and target of revenue that will

be achieved.

Letter f

Risk management adequacy aspect among others the proof

of risk management implementation readiness that at least

include operational risk, legal risk, settlement risk, liquidity

risk, and reputation risk, proven by the availability of

policies and procedures for the implementation of

transaction processing, system maintenance and periodical

audits, disaster recovery plan and business continuity plan.

Letter g

Consumer protection aspect among others on the

transparency of payment system services provided and the

handling of consumer complaints. The fulfillment of

consumer protection aspect is intended to be implemented

by the Payment System Service Provider that provide

services to the end users. In the event the Payment System

Service Provider do not give direct services to the end users,

the Payment System Service Provider referred to still need

to provide support for the implementation of consumer

protection.

Paragraph (2)

Self-explanatory.

Paragraph (3)

Self-explanatory.

Article 10

Self-explanatory.

Article 11

Paragraph (1)

Self-explanatory.

Paragraph (2)

Included in the development of products and activities of

payment system services such as:

a. changes in the mechanism of payment instrument

authentication and payment transaction authorization;

b. additional feature of auto top-up balance;

c. development of infrastructure and security standards;

d. development of products that have more than one payment

instrument functions; and/or

e. development of products and activities related to the service

innovations and payment system technology that increases

risk exposure significantly.

Paragraph (3)

Self-explanatory

Paragraph (4)

Self-explanatory

Article 12

Paragraph (1)

Letter a

Operational readiness among others proven by:

1. recommendations or approvals from the related

authorities on the development plan of payment

system service activities that will be conducted; and

2. general information concerning the development of

payment system service activities among others

containing explanations on the development of

activities that will be implemented, market potentials,

cooperation plans, regional plans of operation, cost

structure of services, and target of revenue to be

achieved.

Recommendations or approvals from related authorities

shall be applied in the event there are related authorities

authorized to supervise and provide recommendations or

approvals.

Letter b

Security and reliability of system among others is proven by

reports on the results of information system audits from

internal or external independent auditors, procedures for

security control, and assessment result of payment system

service activities that will be developed.

Letter c

Implementation of risk management among others proven

by the assessment result toward risk management that

have been implemented as well as the adjustment plan for

policy and risk management procedures of the implemented

activities.

Letter d

Self-explanatory

Paragraph (2)

Performances of Payment System Service Provider among

others:

a. compliance with laws and regulations and/or Bank

Indonesia policy in the field of payment system or which is

related to the payment system. Particularly for Bank,

among others, in relation to the participation in Bank

Indonesia Real Time Gross Settlement, Bank Indonesia

National Clearing System, and/or Bank Indonesia

Scriptless Security Settlement System;

b. implementation of risk management among others,

operational risk and settlement risk;

c. implementation of consumer protection among others the

handling and settlement of customers’ complaints;

d. financial performances; and/or

e. good governance in the operation of payment system

services.

Article 13

Letter a

Legality aspect and company profile among others proven

by documents of company profile, company’s articles of

association including its amendments, business license

already owned, company registration certificate, and

approvals from the related authorities (if any).

Letter b

Competence aspect of the parties which will be invited to

work with, among others proven by the adequacy of human

resources, track records of the management and

experiences in operating payment system services, and/or

support services.

Letter c

Performance aspects consisting of financial performance

and operational performance among others proven by

financial statements of the parties to be invited to work

with, track records of the management and experiences in

operating payment system services, and/or support

services, and/or system test result.

Letter d

Aspects of security and reliability of system as well as

infrastructure among others proven by the fulfillment of

standards related to the system security and infrastructure

used in accordance with national, international, or

generally accepted standards in the industry as well as the

security and confidentiality of data.

Letter e

Legal aspect shall be proven among others by the clarity of

the scope of cooperation as well as the rights and

obligations of each party, plan of implementation, and

period of the cooperation.

Article 14

Paragraph (1)

What is meant by “Accountable” is that the Payment System

Service Provider shall always ensure that the Support Provider

carry out their duties well.

Paragraph (2)

Evaluation shall be undertaken to ensure that the provision of

support services still supports the implementation of safe,

efficient, smooth and reliable payment transactions by paying

attention to the aspect of consumer protection.

Article 15

Paragraph (1)

Self-explanatory.

Paragraph (2)

Letter a

Administrative research shall be conducted among others

to ensure the completeness, correctness, and suitability of

the documents submitted.

Letter b

Self-explanatory.

Letter c

Examination shall be carried out by a visit to the business

location (on site visit) of the concerned Bank or Non-Bank

Institution in order to verify the correctness and suitability

of the documents submitted, as well as to ensure the

operational readiness.

Paragraph (3)

Letter a

Administrative research shall be conducted among others

to ensure the completeness, correctness, and suitability of

the documents submitted.

Letter b

Self-explanatory.

Letter c

Examination shall be carried out by a visit to the business

location (on site visit) of the concerned Bank or Non-Bank

Institution in order to verify the correctness and conformity

of the submitted documents, as well as to ensure the

operational readiness.

Paragraph (4)

Self-explanatory.

Paragraph (5)

What is meant by “national policy” are programs set by Bank

Indonesia, central government, and/or regional governments by

still taking into account their conformity with the policy

direction of Bank Indonesia, e.g. channeling social assistance

and government subsidy, non-cash (electronic) services, and

inclusive financial.

Paragraph (6)

Self-explanatory.

Article 16

What are meant by “foreign parties” are foreign citizens, foreign

corporations, and/or other foreign bodies which are not Indonesian

legal entities.

Article 17

Paragraph (1)

Including in the licensing policy of the payment system service

operations, among others:

1. closing and reopening the granted license as the Payment

System Service Provider; and/or

2. granting license for limited operation of payment system

services in the context of:

a. fulfill requirements as Payment System Service

Provider; or

b. operating payment system services that have not been

regulated by Bank Indonesia,

by fulfill the criteria set by Bank Indonesia.

License for limited operations of payment system services

shall be conducted among others by limiting the coverage

and time period, and/or region of the payment system

service operations.

Paragraph (2)

Letter a

Consideration in maintaining the national efficiency is

intended to create efficiency at the level of payment system

service industry, which in turn will lower the cost of using

payment system services by the community.

Letter b

The consideration for supporting the national policy is

intended so that the growth of payment system service

industry shall not be a barrier for the national policy

established by the government, Bank Indonesia, and/or

related authorities.

Letter c

The consideration for keeping the public interests is

intended so that the payment system service industry

constantly meets the community needs at large with the

same access and quality, as well as affordable costs.

Letter d

The consideration for keeping the industry growth is

intended so that the industry can grow optimally through

the improvement of value and volume of non-cash payment

transactions existing in the community.

Letter e

The consideration for maintaining a healthy business

competition is intended so that the operation of payment

system services can be conducted fairly, not against the

law, or not hampering business competition.

Article 18

Self-explanatory.

Article 19

Paragraph (1)

Implementation of risk management shall be conducted by

considering the characteristics and complexities of risk profile of

payment transaction processing operations.

Letter a

Active supervision of management among others shall be in

the form of determination on accountability, policy, and

control process to manage risk that might arise from the

operation of payment system services.

Letter b

The adequacy of policies and procedures as well as

organizational structure among others is in the availability

of a clear organizational structure and division of duties and

authorities.

Letter c

Self-explanatory.

Letter d

Internal control of payment system service operations

among others shall cover the procedures and security

measures undertaken in the provision of services for users,

audit trail of processed payment transactions, and

adequate procedures to ensure the integrity of data and

information, as well as measures to protect the

confidentiality of data and information of users.

Paragraph (2)

Self-explanatory.

Paragraph (3)

Self-explanatory.

Article 20

Paragraph (1)

What is meant by “information system” is the application of

information technology based on telecommunication network

and electronic media which serve to design, process, analyze,

display, and send or disseminate electronic information.

Paragraph (2)

Letter a

The fulfillment of certification and/or security standards

and system reliability in compliance with the principles of:

1. confidentiality of data;

2. integrity of system and data;

3. authentication of system and data;

4. prevention of repudiation of transaction made (non-

repudiation); and

5. availability of system.

Letter b

Maintenance and enhancement of technology security

among others carried out by improving or replacing the

infrastructure or technology system used in the event of

quality degradation such as its system and/or technology

proven to have been penetrated by fraudsters.

Letter c

Audit implementation conducted to the information system

by independent auditors shall be in accordance with the

provided services.

Coverage of information system audit, at least includes:

1. operational security;

2. network, application, and system security;

3. security and integrity of data or information;

4. environmental and physical security, including control

toward access to system and data;

5. management of system changes;

6. management of system implementation; and

7. written procedures related to the security of

technology.

Paragraph (3)

Letter a

Security of data and information among others conducted

through encryption to data and information of users. The

security of data and information also covers data and

information processed or stored by the third parties

working with the Switching Provider.

Letter b

Self-explanatory.

Paragraph (4)

Letter a




information processed or archived by the third parties

working with the Payment Gateway Provider.

Letter b

Self-explanatory.

Letter c

Implementation of fraud detection system shall be carried

out to detect any abuse of data and information of users.

Paragraph (5)

Letter a




information processed or stored by the third parties

working with the Electronic Wallet Provider.

Letter b

System and procedures of activation and utilization of

Electronic Wallet among others shall cover the procedures

of activation, use or change of password or Personal

Identification Number (PIN).

Letter c

Implementation of fraud detection system is conducted to

detect any abuse of data and information of users.

Article 21

Paragraph (1)

Self-explanatory.

Paragraph (2)

Self-explanatory.

Paragraph (3)

What is meant by “source of funding origin for making payment

transactions” are funds derived from payment instruments

and/or funds accommodated in Electronic Wallet.

Article 22

Paragraph (1)

Self-explanatory.

Paragraph (2)

In the event funds accommodated in Electronic Wallet exceeds

the maximum limit set by Bank Indonesia due to refund, the use

of the referred fund for payment transactions shall be carried

out by still referring to the maximum limit of Electronic Wallet

funds.

Paragraph (3)

Self-explanatory.

Paragraph (4)

Self-explanatory.

Article 23

Self-explanatory.

Article 24

Self-explanatory.

Article 25

Self-explanatory.

Article 26

Letter a

What is meant by “information” among others are costs,

benefits, risks, mechanism of opening and closing

Electronic Wallet, instruments that can be used to make

payments through Electronic Wallet, top up mechanism,

types of payment instrument that can be used to make a

top up, and mechanism to change, to add, and to delete

data of the holders as well as data of the payment

instrument.

Letter b

What is meant by “mechanism of handling of consumers’

complaints” among others is the mechanism of receipt of

complaints, handling and settlement of complaints, and

also monitoring to the handling and settlement of

consumers’ complaints.

Article 27

Self-explanatory.

Article 28

Paragraph (1)

Self-explanatory.

Paragraph (2)

Self-explanatory.

Paragraph (3)

Self-explanatory.

Paragraph (4)

Letter a

Disruption in payment transaction processing is the

disruption that shall impact significantly to the continuity

of payment transaction processing.

Letter b

Self-explanatory.

Letter c

Self-explanatory.

Letter d

Reports on the changes in data and information among

others contain changes in the name of Payment System

Service Provider, the office address, changes in the principal

business relationships, changes in the arrangement of

rights and obligations of the parties, changes in the

cooperation agreement, and changes in the cooperating

parties, as well as changes in procedures and mechanism

of dispute resolutions.

Letter e

Including in the other reports are reports for the

development of products and activities other than

development of features, types, services, or facilities of

products and/or activities of payment system services

already ongoing.

Paragraph (5)

Self-explanatory.

Paragraph (6)

Self-explanatory.

Paragraph (7)

Self-explanatory.

Article 29

Paragraph (1)

Reports on the operation of Electronic Wallet among others

containing information on company profile, general

description/information on Electronic Wallet implemented,

number of the holders, and target of revenues.

Paragraph (2)

Self-explanatory.

Article 30

Self-explanatory.

Article 31

Self-explanatory.

Article 32

Paragraph (1)

What is meant by “acquisition” is an act of law undertaken by a

legal entity or an individual to acquire the shares of a Bank or

Non-Bank Institution causing the transfer of control of the

concerned Bank or Non-Bank Institution.

Paragraph (2)

Self-explanatory.

Paragraph (3)

Self-explanatory.

Article 33

Self-explanatory.

Article 34

Letter a

What is meant by “virtual currency” is digital money issued

by parties other than monetary authorities obtained by way

of mining, purchase, or purchase transfer (reward) among

others Bitcoin, BlackCoin, Dash, Dogecoin, Litecoin,

Namecoin, Nxt, Peercoin, Primecoin, Ripple and Ven.

Not included in the understanding of virtual currency is

electronic money.

Letter b

What is meant by “abusing data and information” is the

retrieval and use of data other than for the purpose of

payment transaction processing, e.g. retrieval of card

number, card verification value, expiry date, and/or service

code in Debit/Credit Card through cash register at

merchants (double swipe).

Letter c

What is meant by “value that can be equated with the value

of money” among others credit value, bonus, voucher, or

point reward managed by certain parties.

Article 35

Self-explanatory.

Article 36

Self-explanatory.

Article 37

Self-explanatory.

Article 38

Self-explanatory.

Article 39

Self-explanatory.

Article 40

Self-explanatory.

Article 41

Self-explanatory.

Article 42

Paragraph (1)

What is meant by “supporting documents” among others

documents that contain general information concerning

Proprietary Channel operated, security and reliability of system,

and other required information.

Paragraph (2)

What is meant by “Payment System Service Provider that have

implemented the development of Payment Gateway and/or

Electronic Wallet activities” are Payment System Service

Provider that have submitted application to Bank Indonesia to

implement the development of the referred activities and have

acquired an approval or a confirmation from Bank Indonesia.

Article 43

Self-explanatory.

SUPPLEMENT TO STATE GAZETTE OF REPUBLIC OF INDONESIA

NUMBER 5945.