Jakarta, August 17, 2023 – Bank Indonesia (BI) is set to launch a new financial transaction data system called Payment ID. This initiative aims to create a comprehensive public financial profile, integrating everything from income and spending to investments and debt.
Payment ID to Streamline Financial Data and Enhance Policy
Bank Indonesia’s new Payment ID system will offer a unique identifier for financial transactions, paving the way for a more granular understanding of individual financial behavior.
Key Takeaways:
- Bank Indonesia is testing a new system called Payment ID.
- The system aims to create a unique identifier for public financial transactions.
- Payment ID will integrate data from bank accounts, credit cards, and e-wallets.
- It will also track investments and individual debt, including online loans.
- Data privacy and security will be maintained with user consent for sharing.
Dicky Kartikoyono, Head of BI’s Payment System Policy Department, announced that the Payment ID system would commence testing on August 17. Currently, it’s in a trial phase focusing on a specific use case: improving the accuracy of distributing non-cash social assistance.
“At present, Payment ID is still in the trial/experimentation stage,” Dicky stated in Jakarta on Wednesday, July 23. He explained that its initial application is limited to a specific use case aimed at enhancing the accuracy of non-cash social assistance distribution.
The development of the Payment ID system and its underlying infrastructure is expected to span several years. This new system is a key component of BI’s broader effort to build robust data infrastructure, as outlined in the Indonesian Payment System Blueprint (BSPI) 2030.
What is Payment ID?
Payment ID functions as a public financial transaction data information system. Its core purpose is to serve as a unique identifier, or “unique identifier,” to optimize the collection and analysis of granular financial data. Dudi Dermawan Saputra, Director of BI’s Payment System Policy Department, highlighted that Payment ID would consolidate diverse financial activities.
This integrated system will capture financial interactions ranging from income to spending, utilizing data from bank savings, credit cards, and various e-wallets. Beyond basic transactions, Payment ID will also provide insights into individual investment portfolios and debt burdens, including those incurred through online lending platforms.
Crucially, the Payment ID system will create a public financial profile that is linked to the Population Identification Number (NIK). Dudi emphasized that BI is committed to developing secure infrastructure to safeguard community data and privacy. Any sharing of this sensitive information will require explicit approval from the data owner to prevent misuse.
For instance, an individual might receive a mobile notification if their Payment ID data is accessed by a bank for a credit application, but only if they have given their consent. “We (BI) will protect the Payment ID owner and avoid abuse from unwanted parties,” Dudi assured.
Key Functions of Payment ID
The BSPI 2030 framework details three primary functions for Payment ID:
- User Profiling: Serving as a key identifier to build comprehensive payment system user profiles.
- Transaction Authentication: Acting as the primary key for authenticating transactions.
- Data Aggregation: Functioning as a unique key to aggregate individual profile data with granular transaction details.
The overarching goal is to establish a public data system that bolsters transaction integrity and informs national policy formulation.
