Do You Want to Have Electronics Money? Here Are the Terms
Bank of Indonesia has released new rules related to the launching of electronics money in Indonesia. The rules are mentioned on the Bank of Indonesia Regulations number 20/6/PBI/ 2018 that had been issued on 4th May 2018. With the issue of this rule and regulation, there are a number of adjustments in the distribution of electronics money.
Generally, this regulation manages rules of ways on how to submit and launch permission of electronics money, minimal limit of fund, and limit of foreign stockholder in companies of electronics money service providers. With the rule and regulation, it is expected that electronics money in Indonesia tends to be transparent.
Basic differences of this rule and regulation with the previous terms are about a matter of business division in holding services of electronics money. The first one is Front End and also Back End. “Especially in a matter of giving permission based on types of conducted services. Don’t let one player empowering every business position and chance and finally makes the business unhealthy and not run well,” said Onny Widjanarko, Executive Director of Bank of Indonesia Payment System Policy Department when he discussed at relax on Monday, 7th May 2018.
Front End business includes the launcher and maker of electronics money and payment and acquiring gateway. Meanwhile, for Back End business, it includes settlement and switching. “ It is not allowed to let one company submit permission for two groups of different permission matter. For example, he apply a launching permission of electronics money of Front End group and he did it for switching or settlement of Back End group. This is not allowed,” said him.
The difference is related to holding period of permission for five years. It means that a permission holder is unable to move business lines and levels or take over his permission to the other companies for 5 years. “Why do we get holding period? It is caused that permission is not legally sold and bought. So, the permitted company will monitor once in order to avoid double permissions,” said him.
He added that another aspect discussed in the regulation of electronics money is related to a portion of foreign stockholder in a company of electronics money service provider. “ If it was not managed well, it must be managed now. The composition of stock ownership of launcher is at least 51% of Indonesian citizen, “ said him. It means that a portion of foreign stockholder is not more than 49%.