JAKARTA (TheInsiderStories) – Bank Indonesia (BI) launched a standard for QR Code or Indonesian QR Code Standard (QRIS) that make payment system possible interconnected and interoperable.
Governor of BI Perry Warjiyo said, at the initial stage, BI introduced QRIS for Merchant Presented Mode (MPM) and would be implemented in the second half of 2019.
“This is the first step in the digital transformation of the Indonesian Payment System to accelerate the development of digital economy and finance,” Warjiyo said in Jakarta, Monday (5/27).
On the other hand, Warjiyo also explained the five visions of Indonesia’s payment system until 2025. It is to ensure the flow of digitalization develops in a conducive digital economic and financial ecosystem.
This vision is to anticipate the risk of digitalization such as increasing cyber threats, monopolistic competition, and shadow banking which can reduce the effectiveness of monetary control, financial system stability, and smooth payment systems.
The five vision are, first, the integration of national digital finance economies to guarantee the functioning of the central bank in the process of money circulation, monetary policy, and financial system stability, as well as supporting financial inclusion.
Second is to support the digitalization of banking as the leading institution in the digital finance economy through open-banking and the use of digital technology and data in the financial business.
The third is to guarantee interlink between fintech and banks to avoid the risk of shadow banking through the regulation of digital technology (such as the Application Programming Interface-API), business cooperation, and company ownership.
Fourth is to guarantee a balance between innovation with consumers protection, integrity and stability as well as fair business competition through the implementation of Know Your Customer (KYC) & Anti-Money Laundering / Combating the Financing of Terrorism (AML / CFT), openness obligations for data/information/public business, and the application of reg-tech & tech support in reporting, regulation and supervision obligations.
Fifth is to guarantee national interests in the digital financial economy between countries through the obligation to process all domestic transactions and cooperation between foreign and domestic operators, taking into account the principle of reciprocity.
“The five vision will be realized through five initiatives, both of which will be implemented directly by Bank Indonesia according to their duties and authorities, or implemented through productive collaboration and coordination with relevant Ministries and Institutions and industries,” he said.
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