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BI Reg 22 divides payment system providers into two categories: payment service providers and payment system infrastructure providers. Companies that provide payment services have to obtain a license from Bank Indonesia. Banks or non-bank institutions that facilitate payment transactions are defined as payment system providers. They may carry out the following activities: (1) provision of information on fund source; (2) payment initiation or acquiring services; (3) administration of fund source; and (4) remittance services. Payment system infrastructure providers are defined in BI Reg 22 as parties providing infrastructure that may be used to conduct the transfer of funds for the interest of their members. For the interest of members, payment system infrastructure providers may provide clearing or final settlement services. BI Reg 23/6 for payment service providers and BI Reg 23/7 for payment system infrastructure providers provide additional details on licensing requirements.1
BI Reg 22, BI Reg 23/6 and BI Reg 23/7 place restrictions on foreign ownership in payment system providers, which was formerly only applied to e-money issuers, principals, switching providers, clearing providers and final settlement providers. Non-bank payment service providers must have a minimum of 15% total shares in their ownership with at least 51% of these having voting rights held by a local entity or entities. For payment system infrastructure providers the requirement is for 80% of total shares and voting rights to be held domestically. These restrictions do not apply to existing licence holders but they are required to adjust accordingly should any forthcoming changes affect the composition of their shareholding.1
BI Reg 23/6 and BI Reg 23/7 increase the minimum capital requirement for applicants of a payment service or payment system infrastructure provider licence. The amount differs depending on the category of licence, with Category 1 (including account information services, payment initiation, acquiring services, account issuance services and remittance services) requiring 15 billion rupiah. Category 2 (account information services and payment initiation and acquiring services) has a minimum initial paid-up capital of 5 billion rupiah; while Category 3 (remittance services and other activities as determined by Bank Indonesia) requires 500 million rupiah if a system is not being provided to other payment service providers, or 1 billion rupiah in case it is. Moreover, all foreign investment companies are mandated to have 10 billion rupiah as their minimum capital.1
Payment system infrastructure providers must have a minimum initial paid-up capital of 100 billion rupiah.1
In addition to BI Reg 22, the concept of ongoing capital has been introduced in BI Reg 23/6 and BI Reg 23/7. Payment system operators must meet this requirement as long as they remain active in the industry. The exact amount needed differs from provider to provider and is not clearly listed in Bank Indonesia's regulations. Self-assessment is required for the calculation process but Bank Indonesia will ultimately decide how much is necessary for a specific payment system operator.1
MOCI Regulation No. 5 of 2020 regarding private electronic system providers, dated 24 November 2020, as amended by MOCI Regulation No. 10 of 2021, dated 21 May 2021 (MOCI Reg 5), requires private electronic system providers (ESPs) to grant access to their electronic systems or electronic data to (1) authorised institutions for supervisory purposes and (2) law enforcement officers for the purpose of law enforcement, in particular criminal investigations, prosecutions and trials conducted in Indonesia. MOCI Reg 5 defines a private ESP as an individual, a business entity, or a member of the public that operates an electronic system. Therein, an electronic system is defined as a collection, processing, analysis, storing, displaying, publishing, transmitting or disseminating electronic information using a series of electronic devices and procedures. As a result, private ESPs are required to provide their electronic client or product data to authorities as third parties.1
BI Reg 23/6 and BI Reg 23/7, effective since 1 July 2021, followed the issuance of BI Reg 22 in late 2020. As a result of these regulations, existing payment system providers are undergoing licence conversions based on the new payment system regime.1
