On 14 November 2016, Bank Indonesia officially launched its Financial Technology (or FinTech) Office. The event was followed by the issuance of Bank Indonesia Regulation No.18/40/PBI/2016 on the Organization of Payment Transaction Processing (“PBI 18/40”) that is available through Bank Indonesia’s official website (even though the regulation came into effect on 9 November 2016).
In general, in its effort to regulate FinTech, PBI 18/40 is aimed at complementing the existing regulations on payment services, ie Bank Indonesia Regulation No. 11/11/PBI/2009 (as amended, Payment by Card) and No. 11/12/PBI/2009 (as amended, e-Money), as well as those related to funds transfer activities. Unless stated otherwise in PBI 18/40, the relevant existing regulations, i.e. the Payment by Card and e-Money regulations, remain in effect.
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