Bank Indonesia: No License for Alipay, WeChat Pay to Operate Yet

TEMPO.CO, Jakarta - Bank Indonesia (BI) said that China's payment company Alipay had agreed to cooperate with CIMB Niaga to provide payment services. The two banks have also filed for a permit from the central bank.

Two other banks, BCA and BRI, will also establish partnerships with Alipay as a gate for the latter's services in Indonesia.

BI deputy governor Sugeng said here on Thursday that BRI and BCA are in the process of preparing all necessary documents for the permit. 

Once the documents are in, as with CIMB's and Alipay's, BI will verify the banks' business plans—evaluating numerous aspects including the security system offered for consumer protection. 

Read: BRI Interested in Alipay, WeChat Pay Partnership

"We will evaluate the technicality of the system's organization. We have to check whether it is safe for consumers," Sugeng said. 

To date, Bank Indonesia has yet to issue permits for Alipay and WeChat Pay to operate in Indonesia.

"If we hear that they are operating without collaborating with local banks, they are violating our rules. BI had warned them, and we will continue to monitor everything," he remarked.

Earlier reports said that both Alipay and WeChat have been operating without license—collaborating with merchants in Bali offering payment services for foreign tourists.

Bank Indonesia mandates all foreign principals seeking to process transactions in Indonesia to go through local switching companies approved by the central bank. The rule is stipulated on BI Regulation no.19/8/PBI/2017 on the National Payment Gateway (GPN).

ANTARA