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.