Bank Indonesia Tightens Payment System Certification Standards

In 2020, the Bank Indonesia (“BI”) Board of Governors introduced Regulation No. 22/3/PADG/2020 on the Implementation of Competency Standardization Within the Payment System and Rupiah Management Sector, which was subsequently amended several times, most recently through the issuance of Regulation No. 24/19/PADG/2022 (collectively referred to as “Regulation 22/2020”). At its core, Regulation 22/2020 addressed the mechanism for competency standardization within the payment system and rupiah management sector, which encompasses cash payment operations, non-cash payments, treasury transaction settlements and trade financing, as well as securities administration.

However, following the enforcement of Regulation of the BI Board of Governors No. 5 of 2024 on Competency Standardization Within the Payment System Sector (“Regulation 5/2024......