In 2019, Bank Indonesia’s (“BI”) Board of Governors introduced Regulation No. 21/12/PADG/2019 on the Organization of Fund Transfers and Scheduled Clearing by Bank Indonesia (“Regulation 21/2019”). This framework primarily established various prerequisites that specifically related to the implementation of fund transfers and scheduled clearing through BI’s National Clearing System (Sistem Kliring Nasional Bank Indonesia – “SKNBI”). These included prerequisites such as criteria for participant eligibility, operational procedures for clearing activities and infrastructure requirements necessary for effective system operations.[1]
However, in an effort to improve efficiency and further mitigate risks relating to the implementation of fund transfers and scheduled clearing, while simultaneously expediting the overall digitalization of the payment system, the BI Board of Governors has now decided to update the above-described framework through the issuance of Regulation No. 5 of 2024 on the Amendment to Regulation 21/2019 (“Amendment”), which has been in force since 27 June 2024.[2]
Among various adjustments introduced under the Amendment, a special rack system designed to accommodate scrip (warkat......