Bank Indonesia Inaugurates Indonesian QR Code Standardization

Bank Indonesia inaugurated the QR Code Indonesia Standard (QRIS) as the first step in digital transformation in the Indonesian Payment System (SPI) to help accelerate the development of the digital economy and finance.

"The presence of QRIS allows payments via QR to be connected and interoperability using a standard QR Code," said Bank Indonesia Governor Perry Warjiyo, Monday (27/5).

In the early stages, BI will introduce QRIS to merchant presented model (MPM) which will be implemented in the second semester of 2019. Previously, this initiation was carried out by BI since last year with the first phase of the trial (pilot project) which took place from September to November 2018.

In addition to releasing QRIS, BI also introduced five SPI 2025 visions that were created to ensure that digitalization flows develop in a conducive digital economic and financial ecosystem. This, continued Perry, is a response to the development of digitalization which has significantly changed the risk landscape.

Such as increasing cyber threats, monopolistic competition, shadow banking which can reduce the effectiveness of monetary control, financial system stability, and the smooth running of the payment system.

In the elaboration of this vision, it will be realized through five initiatives that will be implemented directly by BI, through productive collaboration and coordination with relevant ministries and institutions as well as industry.

The first initiative is digital open banking and bank-fintech interlink. Perry explained BI will release standardization Open API because it allows the safe disclosure of bank and fintech financial information to third parties to provide variety and convenience for the public in conducting transactions and enable interlink between perpetrators.

The scope of this activity will be realized in three ways, technical API standardization, API Security, and contractual standardization.

"BI has conducted a survey on how banks can engaging with fintech via API."

Second, development retail payments. Retail SP development design as a whole leads to overall implementation real-time, seamless pattern, available 24/7 with a higher level of security and efficiency. The scope of activities in this initiative is the development of an API-based payment system, fast payment, as well as the expansion of GPN services.

Third, development wholesale payments and financial market infrastructure. Develop a large value payment system and financial market infrastructure capable of supporting monetary policy, FSS, and supporting interlinked financial market infrastructure.

Fourth, data. BI will develop a collaborative and integrated national data, including infrastructure, so that its utilization can be optimized. As part of this initiative is the development of trusted Digital ID, development Data Hub, Settings Data Protection including consumer consent and cloud policy.

Finally, regulation, supervision, licensing, and reporting. The acceleration of the digital financial economy requires strengthening the regulatory framework, licensing, supervision, and reporting, including technology strengthening (regtech & suptech).