Bank Indonesia Roles
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Transcript of Bank Indonesia Roles
1
BANK INDONESIA ROLES
• Responsibilities:
Maintain exchange rate and price stability to a balanced and
sustainable economic growth
Promote smooth and sound payment and settlement system
• Financial Inclusion Advocacy:
Microfinance and access to finance for the unbanked
Consumer protection
Financial and payment system education
Advocacy program
Facilitation to meet supply and demand
2
Safe and
Efficient
Payment System
OVERSEER
Oversight payment
system
Ensuring consumers
protection.
FACILITATOR
Facilitate payment
system
development by
industry
REGULATOR
Formulate policy and
regulation
LICENSOR
Give a license to
operate payment
system
OPERATOR
Cheques clearing and
settlement
BI ROLES IN RETAIL
PAYMENT SYSTEM
3
DIGITAL PAYMENT FOR FINANCIAL
INCLUSION
E-Money Chip-based
Server-based
E-Money
• International Finance Corporation (2014) defines “digital financial
services” as encompassing electronic payments, including retail
payments by card or mobile phone.
• Digital payments within the financial inclusion framework is aimed to
enhance financial access to society from any location and involves
connectivity between both financial and non-financial institutions.
Types of Digital Payment:
Mobile Banking
Internet Banking
Account-Based
4
MPS
3
Mobile Payment to Bank Account
2 P to P
Transfer
5
Cash Out
4 Bank Account to Mobile Payment
(Top up)
1
Government Aid Program
Digital Financial
Services (DFS)
using Registered
E-Money
BI New Regulation on Mobile Payment
6 Agents: including persons
5
RISKS AND MITIGATION
Risk Related E-Money for Financial Inclusion
• Operational Risk:
Transaction failure due to weak/no signal in the remote areas
Technology literacy in using new payment device/method, i.e.
mobile phone or EDC
Mitigation: promoting telco network reliability; education.
• Reputational Risk
Agent not properly trained
Agent fraud ie. stealing money, fake transaction
Mitigation: agent due diligence; regulation; supervision.
• System Risk
System loop hole: fraud from internal organization
Weak security in initial phase ie. Using unencrypted SMS
Mitigation: Regulation: obligation of e-money provider to use a
secure system and comply with international standards.