The Implementation of Electronic Money Arrangement: Effective or Difficult?

Nowdays, Electronic money is increasingly being used, especially when payment of toll money must use electronic money which is set by Regulation of the Minister of Public Works and Public Housing number 16/PRT/M/2017 about Non-toll Toll Transaction on Toll Road. Since the policy is implemented, many people who do business see this rule as a business opportunity, starting from making of electronic money card, application creation of implementing the Electronic Money System, and the other. As a form of accommodation of this policy, Bank Indonesia as regulators have prepared themselves to confront The Implementation of Electronic Money by issuing 2 (two) rules which set about The Implementation of Electronic Money, that is Circular Letter BI No. 16/11/DKSP year 2014 (“SEBI 16/2014”) has been changed with Circular Letter BI No. 18/21/DKSP year 2016 (“SEBI 18/2016”). Various pros and cons are born from the application of this rule, especially from businessmen, therefor a question arises in the midst of society: Is The Implementation of Electronic Money Arrangement Effective or Difficult?

To answer that question, we need to take a closer look at SEBI 16/2014 and SEBI 18/2016 which regulations governing Electronic Money Management. Bank Indonesia provides E-Money as "Payment instrument published on the basis of the value of the money deposited in advance to the publisher and stored electronically on a media server or chip, is used as a means of payment to the merchant who is not an E-Money Publisher and the electronic money is not a savings as referred to in banking rules". In addition to regulating the understanding and technical rules of Electronic Money, Bank Indonesia also regulates which parties are have right to apply for a license as an Electronic Money Publisher, which is limited to Banks and Limited Liability Companies specialized in finance, telecommunications, systems and network providers , public transport, and or other business fields approved by Bank Indonesia.

Many entrepreneurs who objected to applying for permission as Electronic Money Publishers, it is considered difficult and not essential for their company because their company is a startup company with limited fund.

Based on our discussion with the Bank Indonesia Payment System Regulatory Division, Electronic Money publisher in the form of Limited Liability Company is not obliged to apply for license as publisher if its floating fund is less than Rp 1,000,000,000.00 (one billion Rupiah), however, the supervision division of Bank Indonesia will always monitor the activities of the Limited Liability Company, if its floating fund rises to near, equal, and even exceeds Rp 1,000,000,000.00, Bank Indonesia requires the Limited Liability Company to update the information, data and or reports requested by the Bank Indonesia supervisory division and immediately applying for permission as Publisher.

Many opportunities to conduct business activities involving the use of Electronic Money in it, As Good Indonesian Citizens, we are obliged to conduct business activities within the right scope of the law intelligently and carefully.

To find out more about the business that includes or offends The Implementation of Electronic Money, you can contact us in the box shown on our website