Payment system is a system that includes regulations, institutions, and mechanisms used to transfer funds in order to settle obligations arising from economic activities. The payment system is understood together with the concept of money as a medium of exchange or intermediary in goods, services and financial transactions. In principle, the payment system has three stages of processing, namely authorization, clearing and settlement.
Talking about the payment system, the role of Bank Indonesia, which is the central bank and independent institution, is free from interference from the government or related parties, except for a number of things that have been regulated and stated in the law. Bank Indonesia itself is responsible for firmly rejecting any intervention in any form and from any party. In addition, Bank Indonesia also has a role and function as a monetary authority to be more effective and efficient in regulating the payment system and focus on maintaining the balance of the rupiah.
The following are part of the main tasks of Bank Indonesia in the payment system in order to maintain or ensure the smoothness and security of the payment system in Indonesia by implementing policies such as the following:
- Security enhancement
Aims to maintain the trust of the Indonesian people in various alternative means of payment commonly used by the community in economic activities or transactions that are usually carried out.
- Improved efficiency and effectiveness
Aims to create efficiency and effectiveness both for the industrial world and for the user community in conducting various payment transactions.
- Expansion of payment access and consumer protection
In this case, Bank Indonesia seeks to expand the scope of payment system services so that it can be wider and more evenly distributed throughout Indonesia and to improve consumer protection so that users or the public feel safe and comfortable when making payment transactions.
In order to maintain and regulate the smoothness, security and convenience of the payment system, Bank Indonesia has an important role to support and realize this. Therefore, the following are important roles of Bank Indonesia in the payment system:
As Regulator and Facilitator
In order to support the smooth running of the payment system, Bank Indonesia plays a role
As a regulator whose task is to ensure that all processes in the payment system run smoothly and without problems, and as a facilitator of Bank Indonesia, it is the task of evaluating all processes that are running and improving the existing or already running system so that it will be even better in the future. Both of these are done by implementing regulations, terms and conditions, and even sanctions that bind financial service providers. So that the use of payment systems such as money transfers, debit and credit cards, to QRIS, has been regulated to prevent and minimize the risk of misuse.
In this case, Bank Indonesia is in charge of issuing permits to companies and parties conducting transactions but not arbitrarily allowing parties or companies to circulate financial products or services such as permits to institutions that will carry out fund transfer activities, payment instruments using cards (APMK) and money. electronic (e-money).
In order for payment activities or processes to run smoothly, Bank Indonesia should supervise the payment process or the activities of business actors involved in the payment system. This can be done by monitoring and requiring every payment system service provider, be it commercial banks or fintech, to submit an official report. The purpose of this supervision is to maintain or protect the community, banks, companies, and stakeholders.
Bank Indonesia has provided payment system services, namely Bank Indonesia Real Time Gross Settlement (BI-RTGS) and Bank Indonesia National Clearing System (SKNBI). And for the Bank Indonesia Scriptless Securities Settlement System (BI-SSSS), BI provides administration and securities settlement services.
Reducing Payment System Risk
Another equally important role that Bank Indonesia has in the payment system is reducing risks that can harm the public. For example, if there is a failed transaction or a failure to settle, the payment system will be hampered. Therefore, Bank Indonesia continues to seek solutions and develop mechanisms that can reduce various risks in the payment system, such as the implementation of Real Time Gross Settlement (RTGS) which can strengthen the security and speed of real-time payment systems.