8 September 2021

In an endeavour to support the national payment system reformation as outlined in Bank Indonesia’s 2025 Payment System Blueprint, Bank Indonesia (“BI”) continues to keep up with the development of payment system business model. In less than a year following the issuance of BI Regulation No. 22/23/PBI/2020 on Payment System (Sistem Pembayaran) (“SP Regulation”) in 2020, BI has recently issued the BI Regulation No. 23/6/PBI/2021 on Payment Service Providers (Penyedia Jasa Pembayaran)(“PJP Regulation”) as one of the implementing regulations to accommodate the needs of a more comprehensive regulatory framework in payment system industry.

The PJP Regulation came into force on 1 July 2021, and simultaneously revoked and superseded the following previous regulations:

  1. BI Regulation No. 11/11/PBI/2009 on Operation of Card-Based Payment Instruments (Penyelenggaraan Kegiatan Alat Pembayaran dengan Menggunakan Kartu) and its amendments;
  2. BI Regulation No. 18/40/PBI/2016 on Operation of Payment Transactions Processing (Penyelenggaraan Pemrosesan Transaksi Pembayaran);
  3. BI Regulation No. 19/12/PBI/2017 on Operation of Financial Technology (Penyelenggaraan Teknologi Finansial);
  4. BI Regulation No. 20/6/PBI/2018 on Electronic Money (Uang Elektronik);
  5. arrangement and supervision of payment system provisions under BI Regulation No. 18/9/PBI/2016 on Arrangement and Supervision of Payment System and Rupiah Currency Management (Pengaturan dan Pengawasan Sistem Pembayaran dan Pengelolaan Uang Rupiah); and
  6. licensing provisions under BI Regulation No. 14/23/PBI/ 2012 on Fund Transfer (Transfer Dana).

It is to note that any implementing regulation of the regulations on items above remain effective and applicable for the next one year provided that it does not conflict with the new provisions under the new PJP Regulation.

What is PJP under the new regulation?

PJP or Payment Service Providers introduced under the PJP Regulation is defined as either bank or non-bank institutions that provide services to facilitate the payment transactions to the consumers. BI further addresses an exhaustive list of requirements to engage in PJP activities. Any prospective PJP candidates who wish to secure the license from BI may take notes on the summary of requirements below:

Scope of activities


The main activities permitted for PJP encompass the following:

  • provision of information on sources of funds (account information services), which includes initiation of payment based on the consumer’s consent;
  • payment initiation and/or acquiring services, which includes transmitting instructions for transfer of funds or payment transaction-data;
  • administration of sources of funds (account issuance services), which includes authorisation of payment transactions; and/or
  • remittance services, which includes acceptance and execution of fund transfers.
To support the payment system process, PJP may cooperate with supporting providers that are permitted to provide the following services:

  • provision of technology for processing of payment transactions, which services ranging from provision of system and/or platform for payment transaction to provision of authentication feature for payment transaction authorisation; and
  • provision of supporting services for other payment system’s implementation activities, which services ranging from marketing activities to white labelling arrangement.
Licensing requirements and categoryPJP is obliged to secure a license from BI. The granting of PJP license is based on the following categories of permits:

  • 1st category is allowed to engage in all scope of activities;
  • 2nd category is only allowed to engage in the scope of activities under items 1 and 2 above; and
  • 3rd category is only allowed to engage in the scope of activities under item 4 above and other activities as further assigned by BI.
The validity period for each license is not specifically determined under the PJP Regulation.

If considered necessary, BI may determine the validity period based on category of permit, implemented activities, and the source of funds.

Other key aspects of requirements
Institutional (form of entity)


This aspect includes validity of legal entity, ownership, control and management of a PJP.  A PJP must be in a form of:

  • Specific for the 1st and 2nd category: PJP must be in the form of a limited liability company (perseroan terbatas).
  • For the 3rd category: PJP must be in the form of a limited liability company or other Indonesian legal entities as regulated under the prevailing regulations on transfer of funds.
Capital requirementsNon-banks

BI differentiates minimum paid-up capital (initial capital) requirements for PJP in the form of non-bank entities based on each category of permits:

  • For the 1st category: a minimum of IDR15billion;
  • For the 2nd category: a minimum of IDR5billion; and
  • For the 3rd category:
    • a minimum of IDR100million for PJP which does not provide systems that can be used by other 3rd category PJPs; or
    • a minimum of IDR1billion for PJP who provide systems that can be used by other 3rd category PJPs.


The minimum initial capital for PJP in the form of banks is subject to the applicable capital requirements in the prevailing banking laws and regulations.

Share-ownershipA non-bank PJP is required to maintain a minimum of 15% of shares to be owned by Indonesian individuals and/or legal entities.

BI further sets out that foreign ownership in a non-bank PJP in the form of a public company to be calculated as follows:

  • less than 5% of foreign ownership traded in stock exchange is deemed as domestic ownership; or
  • such shares may be deemed as foreign ownership if (i) it is traded in the Indonesian stock exchange and declared to be owned by a foreign party; or (ii) the shares are traded outside Indonesian territory.
Risk managementThe implementation of risk management aspects will be assessed through:

  • active supervision by the board of directors and board of commissioners or other supervisory organs;
  • the availability of policies and procedures as well as the fulfilment of the adequacy of the organisational structure;
  • risk management process and functions, as well as human resources;
Information system capabilityInformation system capability aspect will be assessed at least through:

  • security control procedures;
  • fraud management system;
  • information system audit and security testing; and
  • level of capability and availability.

As there are new requirements and adjustment on the payment system provider’s licensing regime under the PJP Regulation, the existing payment system providers (that held licences pursuant to the previous regulations) are required to (i) convert its existing license to PJP license based on BI’s assessment and evaluation, and (ii) comply with the initial paid-up capital specified in the PJP Regulation.

Access to sources of funds

There are new provisions under the PJP Regulation that must be carefully noted by PJP that carries out activities of administration of sources of funds in the form of electronic money and card-based payment instruments, among others:

Electronic money (e-money)

  • PJP that issues e-money and sets the validity period of such e-money must inform the users on the expiration date as well as the settlement mechanism for the remaining balance that has not been used by the users.
  • Obligation to obtain PJP license is exempted for the closed-loop e-money issuer with floating funds of less than IDR1billion.

Card-based payment instruments

  • PJP Regulation now broadens the definition of card-based payment instruments (Alat Pembayaran Menggunakan Kartu – “APMK”) as payment instruments in the form of credit cards, automated teller machine cards and/or debit cards, either in physical form or in other forms that have characteristics, features, and/or business models that similar with credit cards, automated teller machine cards and/or debit cards.
  • PJP that carries out administration of sources of funds and payment initiation and/or acquiring services’ activities related to the processing of payment instruments transactions using cards must apply the national standards for APMK set out by BI.

It is the aim of BI that with the issuance of PJP Regulation, the national payment system reformation under BI’s 2025 Payment System Blueprint as well as provisions under SP Regulation can now be fully applied and adapted for the growing of innovation in payment system industry. By the issuance of this PJP Regulation, however, the existing payment system providers that have secured licences from BI must be aware of new compliance aspects provided and be familiar with the new adjustments under the PJP Regulation.

If you have any questions or require any additional information, please contact Sandro Mieda Panjaitan and Rahmatika Rasyiqa of Roosdiono & Partners (a member of ZICO Law).

This alert is for general information only and is not a substitute for legal advice.


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