The Indonesian Central Bank (Bank Indonesia or “BI”) has introduced a major reform of Indonesia’s payment system industry through BI Regulation No. 10 of 2025 (“PBI 10/2025”) and its implementing regulation, Board of Governors Regulation No. 32 of 2025 (“PADG 32/2025”) on Payment System Industry Regulation. These regulations form part of the Indonesia Payment System Blueprint (Blueprint Sistem Pembayaran Indonesia or BPSI) 2030 and support BI’s mandate under the Financial Sector Development and Strengthening Law (Undang-Undang Pengembangan Penguatan Sektor Keuangan or UU P2SK). Both regulations will take effect on 31 March 2026.

PBI 10/2025 establishes the main regulatory framework, while PADG 32/2025 provides technical and operational guidance. Together, they apply to Payment Service Providers (“PSP”), including Payment Service Providers (“PJP”), Payment Infrastructure Providers (“PIP”), and banks, as well as supporting service providers, infrastructure participants, cooperating parties, and affiliated entities.

The regulations comprehensively reorganize payment system activities and products. Payment services cover the administration of funding sources and the routing of payment transactions, while payment system infrastructure focuses on clearing and settlement. Payment products are structured around sources of funds (such as deposits, e-money, and deferred payment) and access to funds through instruments, channels, and other access methods determined by BI.

A core feature of the new framework is the introduction of TIKMI, which stands for Transactions, Interconnection, Competency, Risk Management, and IT Infrastructure. TIKMI serves as BI’s primary benchmark to assess PSP performance and apply the principle of same activities, same risk, same regulation. TIKMI results affect licensing and approvals, PSP classification, access to payment infrastructure, supervisory actions, and potential termination of activities. PSPs must conduct self-assessments and may be required to submit action plans if minimum thresholds are not met. BI will issue the first official TIKMI assessment results by 1 April 2027.

Based on TIKMI outcomes, PSPs are classified as main PSPs or non-main PSPs, which determines the scope of activities they may conduct. For PJPs, payment activities are grouped into defined activity bundles, and only certain PSPs may carry out specific bundles. PSPs are also required to submit a Strategic Business Plan and an annual Payment System Business Plan, both of which must align with their TIKMI profile and are subject to BI review.

The regulations also strengthen governance, risk management, capital adequacy, market conduct, and data governance. Cooperation with third parties and supporting service providers is more tightly regulated, including mandatory due diligence, contractual safeguards, and registration requirements for critical supporting service providers.

From a supervisory perspective, BI’s authority is expanded to enable ecosystem-based supervision, covering PSPs, supporting providers, affiliates, and payment system infrastructure, including systemic infrastructures such as BI-RTGS and BI-FAST. Administrative sanctions may be imposed based on the severity and impact of violations.

Existing PSPs and infrastructure providers remain recognized but are required to gradually comply with the new framework during the applicable transition periods, including adjustments to licensing, governance, and TIKMI thresholds. Overall, PBI 10/2025 and PADG 32/2025 mark a significant shift toward a more structured, risk-based, and forward-looking payment system regulatory regime in Indonesia.