Key Amendments to the E-money Regulation
On 3 May 2018, the Bank of Indonesia (“BI”) issued a new regulation No. 20/6/PBI/2018 (“PBI 20/2018”) on electronic money or e-money, which repealed the previous e-money regulations. E-money regulations was first issued in 2009 and subsequently amended in 2014 and 2016.
E-money is defined as a payment instrument that is (a) issued based on the value of money deposited in advance to the issuer, (b) is stored electronically in a server or a chip, and (c) managed by the issuer not as savings as defined in the prevailing banking laws and regulations.
Some of the new provisions are:
PBI 20/2018 reacts to the trend in Indonesian financial market by focusing its provisions on non-bank entities in e-money sector as it introduces new provisions to non-bank entities to make them, to certain extent, on par with banks in terms of regulatory screenings. Further, it is also important for stakeholders and entrepreneurs in e-money business to note these relevant changes.
If you have any questions or require any additional information, you may contact Poppy Cut Rahmasuci, Randyaz Iskandar, Brahmantyo Suryo or the ZICO Law partner you usually deal with.
This alert is for general information only and is not a substitute for legal advice.