Electronic Payment System in Indonesia - Photo: Special

JAKARTA (TheInsiderStories) – The Indonesian electronic money (e-money) service TCash officially changes to LinkAja, as an electric payment (e-payment) instrument belonging to the State-owned Bank Association and cellular operator, PT Telekomunikasi Selular (Telkomsel) today. But, the license will launching on March 3rd 2019, told company official report in the written statement on Friday (02/22).

Director of PT Fintek Karya Nusantara (Finarya) Danu Wicaksana, said that with this change, the TCASH application will automatically be converted to LinkAja, while customers who still use USSD need to provide approval via the *800# access menu.

“Starting today, TCASH effective electronic money services have changed to LinkAja. TCASH customers need not worry, because all services and features previously available on TCASH services can still be accessed and enjoyed on LinkAja services. Moreover, we will develop various new features for LinkAja from time to time,” he said in Jakarta on Friday.

Wicaksana stressed that the presence of comprehensive financial services from LinkAja is expected to further accelerate financial inclusion and accelerate the formation of a cashless society carried out by the government in the National Non-Cash Movement (GNNT). In addition, Linkaja aims to complement the digital payment ecosystem in Indonesia.

Meanwhile, Indonesia also reviewing the acquisition procedures of international e-money service Wechat and Alipay to the Indonesia.

Deputy Governor of Bank Indonesia (BI) Sugeng, said that the global e-payment Wechat and Alipay still under review. He added, the completion of the documents and procedures required by BI has been fulfilled by the local e-payment operator.

Unlike LinkAja, the entry of WeChat Pay into Indonesia cannot be decided in the near future. Because, said Sugeng, WeChat, which is required to collaborate with “BOOK IV” banks, as the acquiring in Indonesia, is still limited to discussion and requires more time for implementation.

However, Alipay’ discussion with PT Bank CIMB Niaga Tbk (IDX: BNGA) has been continuing. Cooperation between the two parties has been submitted to the central bank.

“Currently, both parties are adjusting their business models so that the stages are a little more advanced,” he said on Thursday (02/21).

Previously, WeChat dan Alipay planned to enter Indonesian market through state-owned lender PT Bank Negara Indonesia Tbk (IDX: BBNI) Tbk.

Vice President Director Herry Sidharta, said BBNI expect to finalize the collaboration soon because he saw a potential to attract revenues around Rp2 trillion (US$133.33 million) from Chinese tourist who visit the country. He hopes the bank get around Rp100 billion of fee income from the transaction.

Furthermore, Director of Technology and Information Dadang Setiabudi, explained in this collaboration, the lender will become payment gateway for Wechat and Alipay’ customers transaction in Indonesia. In addition, merchants also can earn more income.

Bank Indonesia has put a 49 percent limit on foreign ownership in companies that offer electronic money (e-money) services in a bid to better regulate such services amid growing interest in financial technology.

The limit was set by central bank to all e-money issuer companies, both operating and newly handing permits. The rules said, every company offering payment in electronic money services also must obtain a permit from BI.

The new foreign ownership limit applies only to new investment, or to any existing firm who is changing ownership. Based on central bank regulations, e-money businesses should secure a license from BI for various payment system service providers such as: Principal, Issuer, Acquirer, Clearing Operator and Final Settlement Operator.

As informed, TCash which is under Telkomsel will merge with all of SOE’ bank e-money. The e-money will present holistic services with various payment features such as electricity bill payments, transactions at outlets, and online purchases.

While, Finarya is a company engaged in the system of electronic financial services payment system service providers whose ownership is owned by PT Telekomunikasi Indonesia Tbk (Telkom) through Telkomsel.

Written by Staff Editor, Email: theinsiderstories@gmail.com