Indonesia sets new share ownership rules for payments systems

Photo: REUTERS/Garry Lotulung

Indonesia’s central bank on Friday announced new regulations on payment systems to try to consolidate existing rules, with new requirements on share ownership and capital that could impact firms providing payment services and infrastructure.

Filianingsih Hendarta, the head of Bank Indonesia’s payment systems department, said the new regulation, which takes effect on July 1, reflects advancements in payments and technology and aims to mitigate potential risks in the financial system.

Non-bank payment services will now need to have at least 15% Indonesian owners, while at least 51% of shares with voting rights must be owned by Indonesians, individuals, or entities.

Non-bank payment infrastructure companies must be at least 80% Indonesian-owned, it said.

Payment service and infrastructure providers will be classified based on transaction size, interconnectivity, complexity, and whether it is replaceable, according to the regulation. The classification will determine a provider’s capital and risk management requirements.

It was not immediately clear how the shareholding and capital requirements will affect Indonesia’s growing number of application-based payment system firms, which include Gopay, OVO, and DANA.

OVO, according to company documents, is around 40% owned by Indonesian e-commerce site Tokopedia. The site is in advanced talks with Gojek to merge, sources with knowledge of the matter have told Reuters.

Gojek’s wallet GoPay and OVO welcomed the regulation.

OVO President Director Karaniya Dharmasaputra said the regulator’s new approach would promote good governance, protect consumers and was “important for an adaptive and innovative financial technology ecosystem”.

GoPay Managing Director Budi Gandasoebrata said the company would support the central bank’s implementation, while co-founder and CEO of DANA, Vincent Iswara, told Reuters DANA had always complied with the rules and would continue to do so.

The central bank is set to hold consultations with payment service companies starting next week, Filianingsih said.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.