We would like to ensure that you are still receiving content that you find useful – please confirm that you would like to continue to receive ILO newsletters.
19 June 2009
In order to address developments in the use of electronic money as a payment instrument, Bank Indonesia issued the Regulation on Electronic Money (11/12/PBI/2009). In the preamble the bank states that one of the factors in deciding to issue the regulation was the recent development of electronic money in forms other than cards.
The regulation defines 'electronic money' as a payment instrument which:
The regulation's 51 articles are grouped under 10 chapters. Chapter 2 regulates the relationships between electronic money issuers - that is, banks and other institutions acting as principals, issuers, clearing entities or final settlement organizers. It also defines and elaborates on the relevant obligations, licensing, corporate forms and terms of cooperation, as well as providing information on the suspension and cancellation of licences. The other chapters regulate issues including risk management, licence transfers, supervision and the secure use of technology. One key feature of the regulation is the requirement that electronic money be issued in rupiah.
Bank Indonesia also issued the Regulation on the Administration of Cards as Payment Instruments (11/11/PBI/2009), replacing Regulation 7/52/PBI/2005 on the same subject. The new regulation contains comprehensive provisions covering all aspects of card issuance, clearing mechanisms and settlements, as well as the use of technology.
The two regulations apply not only to banking institutions, which are traditionally under the watch of Bank Indonesia, but also other institutions that act as principals, issuers, acquirers, clearing entities or settlement agencies for payment card business.
Both regulations became effective on April 13 2009.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription.