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Bank Indonesia Announces Electronic Transaction Programs

28 May 2019 23:14 WIB

TEMPO.CO, Jakarta - The Indonesian Government, Bank Indonesia (BI), and the Financial Services Authority (OJK) has agreed to implement 12 synergy programs to drive government electronic transaction innovations. BI Governor Perry Warjiyo, said that the digitalization of government transactions will be focused on social aid, regional government transactions, and transportation.

The program was agreed to during a coordination meeting between the Central Government, Regional Government, and Bank Indonesia. "First, to increase the quality of data of beneficiaries through the use of family registration number as a unique ID in relation to the integration of social aid and subsidy," Perry said on Tuesday, May 28, 2019.

The second program, Perry continued, is the implementation of biometric system as an alternative authentication protocol, which will be started through a pilot project. The third program will be the expansion of non-cash social aid and provisioning of payment system infrastructures, including in remote areas using offline EDCs or VSAT technology.

The fourth program will be educating and empowering beneficiaries through dissemination of information, entrepreneurship training, and financial management in an effort to support economic self-sufficiency.

Further, Perry added that reinforcing legal frameworks through the issuance of regulations on government transaction digitalization will be the fifth program.

For the sixth program, Perry explained that there will be a team dedicated to the expansion of regional digitalization (TPDD) to strengthen coordination and collaboration in implementing digitalization efforts. The seventh program, he said, will be the implementation of a championship system to motivate regional governments in creating innovations to encourage more electronic transactions.

"[The eighth program] will be an innovation of the e-retribution program using the QR Indonesian standard, or QRIS to optimize regional revenues, which will be spearheaded by a pilot project," Perry said.

The ninth program the BI Governor said, will be the implementation of touch-less toll road payment technology through the application of Multi Lane Free Flow (MLFF) system. Such system will be supported by an organizing agency acting as Toll Service Provider (TSP) or Electronic Toll Collection (ETC).

The tenth and eleventh program will be the expansion of digitalization, including integration, of land, crossings, and sea transportation modes; and conducting assessment on the development of new business models, including the inter-transportation modes integration as a reference to national digitalization of transportation modes.

And for the twelfth program, Perry said it would be the establishment of a National Work Group on the acceleration of national strategic plan and regulation drafting to support the payment digitalization for the transportation sector.

HENDARTYO HANGGI



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