INDONESIA Trends and Developments Contributed by: Vik Tang, Michelle Virgiany, Novita Wulandari and Fransiska Larasati, Hiswara Bunjamin & Tandjung
regulatory developments continue to shape the direction of growth and innovation. Digital Payment In 2024, e-Conomy SEA reported a consist - ent 19% increase in Gross Transaction Value (GTV) for digital payments compared to 2023. This growth is driven in part by the expansion of regional cross-border payment connectiv - ity such as Quick Response (QR) codes, which has contributed to financial inclusivity domesti - cally. The authors have seen a number of players exploring expansion into Indonesia but relatively slower M&A and fundraising activities in the past year, in part due to the foreign ownership and control restrictions for payment services com - panies. While BI has continued to expand international interconnectivity through QRIS partnerships with countries such as Japan, the UAE, Korea and India, its 2030 Payment System Blueprint envi - sions advancing fast payment connectivity sup - ported by multilateral interconnectivity through its participation in Project Nexus, which is tar - geted for implementation starting in 2028. BI, together with authorities in Malaysia, Thailand, Singapore, Philippines and India, is actively involved in Project Nexus to (among other objectives) prepare a multilateral interconnec - tion roadmap for remittance use cases. The next milestone for Project Nexus is to form the Nexus Scheme Organisation (NSO) as the operator of the Nexus scheme. BI also enacted new regulations throughout 2024 and in early 2025 to strengthen the payment sys - tem’s regulatory framework. The notable imple - menting payment regulations comprise: • Regulation of the Members of the Bank Indo - nesia Board of Governors No 3 of 2025 on
Third Amendment of Regulation of the Mem - bers of the Bank Indonesia Board of Gover - nors No 21/18/PADG/2019 on Implementation of a National Standard for Quick Response Codes for Payment, issued on 19 February 2025 (the “QRIS Regulation” ); • Bank Indonesia Regulation No 10 of 2024 on Implementation of Anti-Money Launder - ing, Prevention of Terrorism Financing, and Prevention of Financing the Proliferation of Weapons of Mass Destruction for Parties Regulated and Supervised by Bank Indonesia ( “PBI 10/2024” ); and • Bank Indonesia Regulation No 2 of 2024 on Information System Security and Cyber- Resilience for Payment System Providers, Money Market and Foreign Exchange Market Participants, and Other Parties Regulated and Supervised by Bank Indonesia, and its imple - menting regulations (“ PBI 2/2024 ”). The QRIS Regulation was issued to accommo - date technology advances in the payment sys - tem, particularly in relation to QRIS, including the adoption of near field communication (NFC) technology – which also covers fund sources and payment instruments issued outside Indo - nesia. Given the positioning of NFC within the QRIS framework, moving forward it is likely that any transaction facilitated by NFC must use a QRIS channel. However, utilisation of NFC in the QRIS payment model enables touchless pay - ment transaction processing without scanning any QR code, and reduces friction in payment transactions. There are plans to launch NFC- enabled QRIS Tap in the public transportation sector in the first quarter of 2025. In addition, the QRIS Regulation also clarifies that QRIS as a payment channel could be uti - lised for:
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