The Central Bank of Indonesia launched a new retail payment system called BI-Fast on December 21, which aims to reduce the country’s cash usage, reduce financial transaction costs, and improve financial inclusion for the unbanked sex. Bank Indonesia Governor Perry Warjiyo stated that the new system will allow real-time and secure transfers of up to IDR 250 million (US$17,619), with a maximum cost of IDR 2,500 (US$0.17) per transaction for customers. Currently, the inter-bank transfer fee for customers using national payment gateways is 6,500 rupiah (0.46 US dollars) per transaction. Covid-19 promotes digital payments and banking…
The Central Bank of Indonesia launched a new retail payment system called BI-Fast on December 21, which aims to reduce the country’s cash usage, reduce financial transaction costs, and improve financial inclusion for the unbanked sex.
Bank Indonesia Governor Perry Warjiyo stated that the new system will allow real-time and secure transfers of up to IDR 250 million (US$17,619), with a maximum cost of IDR 2,500 (US$0.17) per transaction for customers. Currently, the inter-bank transfer fee for customers using national payment gateways is 6,500 rupiah (0.46 US dollars) per transaction.
The Covid-19 pandemic boosts digital payments and banking
When BI-Fast emerged, the Covid-19 pandemic promoted the use of digital payments and electronic money banking transactions in the country, which increased by 47% and 63%, respectively, reaching 3,877 trillion rupiah (273.2 billion US dollars) and 31.3 trillion According to data from the Central Bank, in November each year it was IDR (2.2 billion US dollars).
“BI-Fast will accelerate the digitization of the national economy, integrate end-to-end digital banking, financial technology, e-commerce and consumers in the payment system industry, promote economic and financial inclusiveness, and support the recovery of the national economy,” Warjiyo said.
BI-Fast will be launched in December, starting with the personal credit transfer service, and then expanding to bulk credit, direct debit and request payment transactions. In the first phase, 21 banks will provide BI-Fast services, which will also be open to other banks and non-banks at the end of January 2022.
Phone number instead of bank account number
The system uses the customer’s phone number to complete the transaction, not the account number. BI-Fast also claims to have an advanced technology platform and strict security system, and seeks to become a potential game changer to promote the further development of digital transactions including cross-border settlement.
The Central Bank stated that BI-Fast is part of the digital implementation of the national payment system outlined in the 2025 Indonesia Payment System Blueprint as of May 2019.
