INDONESIA Trends and Developments Contributed by: Maria Sagrado, Frederick Simanjuntak, Stephanie Kandou and Kaila Arinta Nazneen Zulkarnaen, Makarim & Taira S.
The role of e-money and e-wallets E-money has become one of the most transformative elements of Indonesia’s payment system. Licensed e-wallet providers have rapidly expanded their user bases by offering convenient, low-cost, and often incentivised payment options. These platforms have moved beyond simple payment tools to become eco- systems in themselves, integrating services such as ride-hailing, food delivery, e-commerce, and even investment as well as charity products. The increasing competition among e-wallet provid- ers has also driven innovations such as loyalty pro- grammes, instant cashback, and flexible bill payment options. However, the competition also raises ques- tions about market consolidation, sustainability of promotional spending, and potential data privacy con- cerns. Notwithstanding this, for merchants (especially SMEs), integrating with e-wallets provides access to a significant amount of digitally active consumers. The benefits go beyond faster payments, as digital wallets often offer data insights that help merchants tailor pro- motions and improve customer engagement. While for consumers, the convenience of storing multiple payment options in one app, combined with the abil- ity to transact both online and offline, has been a key driver of adoption. Bank-led digital payment innovations and collaborations While fintech companies have dominated the head- lines, traditional banks in Indonesia have also been active in developing digital payment solutions. Many have upgraded their mobile banking applications, integrated QRIS payment functionality, and part- nered with fintech firms to extend their reach. Even government-owned banks are leveraging their large customer bases and trust capital to roll out innova- tive payment services, including virtual debit cards, contactless credit cards, and biometric authentication for transactions. Some have developed “super apps” that combine banking services with lifestyle features, mimicking the approach taken by fintech platforms. The growth of Indonesia’s payment industry has also been marked not only by technological innovation but also by new forms of collaboration between fintech companies and traditional banks. Rather than com-
grating and interconnecting domestic payment chan- nels and payment system providers, so that trans- actions within Indonesia are processed through local infrastructure rather than relying on foreign networks. These measures are designed to reduce market frag- mentation and ensure that consumers and merchants benefit from greater efficiency and lower transaction costs. More recently, Bank Indonesia expanded the frame- work for QR-based payments by recognising non- scanning-based QR code transactions under Mem- bers of the Board of Governors Regulation No 3 of 2025 on the Implementation of the National Standard for Quick Response Codes for Payments. Previous- ly, QR code payments required scanning via mobile applications, but the new regulation allows non-scan- ning methods, such as Near-Field Communication (NFC) technology. This reduces reliance on manual scanning, enabling more efficient transactions and broader device compatibility. The new QRIS regulation also acknowledges the role of data communication-based payment technolo- gies, including NFC, in expanding payment options. This gives payment service providers and merchants greater flexibility to develop innovative transaction solutions that cater to diverse user needs, in line with the global shift toward contactless and digital pay- ments. The regulation clarifies that messaging-based QR code payments and NFC technology are merely examples of the broader spectrum of potential innova- tions. By accommodating these technologies, Bank Indonesia signals its willingness to adapt to future advancements in payment processing, ensuring that QRIS remains implemented and relevant in an increas- ingly digital world. While no immediate follow-up regulations are expect- ed, Bank Indonesia will likely continue monitoring implementation and market response. Future regula- tory refinements may address emerging challenges or gaps in the framework. Bank Indonesia’s efforts to secure digital payments while promoting economic activity underscore its commitment to maintaining a robust and adaptive payment ecosystem.
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