The National Payment Gateway (GPN) has been implemented since the beginning of the year. With this system, Bank Indonesia (BI) aims to create interoperable and interconnection payment systems that can be operated on various machines and processed domestically.
The Central Bank also initiated Bank the establishment of three GPN operators, namely the Standards Institution, Switching Institutions, and Services Institutions in the domestic payment system. The Standards Institution is managed by the Indonesia Payment Systems Association (ASPI) which its principal function is to create standardized payment system technology such as the implementation of e-money integration.
"The standard is set by BI and must be complied with by all industries. The National Standard Indonesian Chip Card Specification (NSICCS) is the standard payment technology benchmark for ATM/Debit cards, and the SAM Multi Applet for e-money,” said Head of Department of Electronics and GPN of Bank Indonesia Pungky Wibowo at the launching of BCA GPN Passport cards at Menara BCA, Jakarta (16/4).
As reminder, during the launching of the GPN, PT Bank Central Asia Tbk (BCA), PT Bank Rakyat Indonesia Persero Tbk (BRI), PT Bank Mandiri Persero Tbk and PT Bank Negara Indonesia Persero Tbk (BNI) had signed an agreement to establish payment system interoperability for e-money that is usable in various payment channels.
Furthermore, BCA, BRI, Mandiri, BNI, PT CIMB Niaga Tbk, PT Bank Permata Tbk, and PT Artha Graha Tbk as the debit card issuers had also signed an agreement for switching interconnectivity and interoperability.
As for the Switching Institutions consist of four companies, namely newly-formed state institutions viz Rintis Sejahtera, Artajasa Pembayaran Elektronik, Jalin Pembayaran Nusantara, and Alto Network or also known as RAJA.
The role of the said companies is to process payment transaction data domestically for the interconnectivity and interoperability of the systems. Meanwhile, the Services Institutions is in charge of maintaining the security of payment transactions by ensuring the implementation of an end-to-end data encryption, performing an efficient reconciliation, clearing, and settlement, resolving disputes over payment transactions in order to protect customers, and promoting the acceptance of non-cash payment instruments.
“The Services Institutions are determined and jointly owned by a GPN Switching Institution and subsidiaries of the main industry players namely BRI, BNI, Mandiri, and BCA," said BI Governor Agus Martowardojo a while ago.
With the GPN framework, the payment transaction processing (routing) must be done domestically, especially for every payment instruments issued domestically, and is processed through a variety of payment channels nationally. This, in turn, creates a cost-effective banking technology infrastructure because the cost-sharing set up for technological investment on the Electronic Data Capture (EDC) machines.