A bank account number is needed as an “address” for both the sender and the recipient. However, bank account numbers will become extinct in the future. Later, Payment ID will be used as a payment system.
This is stated in the 2025 Indonesian Payment System Blueprint Document. The central bank is directing the modernization of the retail payment system infrastructure to be more efficient and secure by utilizing the latest technology embodied in the Retail Payment System initiative.
Later, the account numbers owned by many people will be transformed into “Payment ID”. “The current configuration of Indonesia’s retail payment system is not sufficient in responding to challenges in the digital era,” BI wrote in its report quoted on April 18, 2022.
GPN services are still limited to debit card transactions. SKNBI is not fully real-time and has not operated 24 hours and 7 days (24/7).
“In addition, there is no transaction scheme that optimally uses a proxy ID that uses a mobile phone number or another type of identification, as a substitute for an account.”
This initiative is expected to be able to respond to the needs of the community, including the need for digital transactions.
The national retail payment system will be organized in a new configuration that will enable the creation of a healthy digital ecosystem.
“The end state of the configuration is a real-time system, operates 24/7, is efficient, cheap, and secure. For this reason, it is necessary to develop a payment system infrastructure that is available at any time (24/7) and can serve various payment transactions between customers. by using Payment ID.”
On the back end, BI-FAST, GPN, and SKNBI are the backbone of the national retail transaction switching, clearing, and settlement infrastructure. BI-FAST is a fast payment infrastructure to accommodate and facilitate payments using cards, EU, and direct-to-account schemes, both credit transfers, and debit transfers.
“BI-FAST will use a real-time gross mechanism and will operate 24/7. The standard ISO 20022 message format will be used to ensure interoperability, both domestically and internationally. In addition, BI-FAST will have a proxy address feature as well as BI-FAST consists of direct and indirect participants which can be either bank or non-bank.”
Furthermore, ATMs are predicted to be extinct. This is because many offline banking activities can now be done online, thus making transactions at ATMs less and less used.
The Governor of Bank Indonesia (BI), Perry Warjiyo, said that digital economic and financial transactions are growing very rapidly. This happened at a time when the acceptance and preferences of the Indonesian people also increased.
Electronic transactions are also reported to have increased. BI report in January 2022, the growth reached 66.65% per year or Rp 34.6 trillion. Digital banking also experienced a similar increase, namely 68.3% per year or Rp 4,314.3 trillion.
However, this does not mean that the use of ATMs and debit and credit cards is not growing. The transaction activity is still increasing, but not as big as digital transactions.
It was reported that ATM, debit, and credit card transactions grew 14.39% or to Rp 711.2 trillion. Transactions using QRIS also grew, reaching a nominal value of 290% per year and 326% in volume.
