“Within the implementation of Bank Indonesia Licensing FO based on PBI 22/2020, the licensing application has been proceeded through one integrated system (E-Licensing Bank Indonesia).”
In May 2020, Bank Indonesia introduced one-stop integrated licensing services in Bank Indonesia, namely Licensing Front Office (FO). Licensing FO has formed based on Bank Indonesia Regulation No. 22/8/PBI/2020 on Integrated Licensing of Bank Indonesia through Licensing FO (“PBI 22/2020”). Prior to the implementation of Licensing FO, the licensing application has proceeded manually (paper-based) through Bank Indonesia Work Units’ are specifically in charge according to the license type. For example, for the Payment System Provider license, the license application must be submitted to the Payment System Department whereas the Monetary Operation Participation must be submitted to Monetary Management Department.
Within the implementation of Licensing FO, the licensing application has been proceeded through one integrated system (E-Licensing Bank Indonesia) under the authority of Banking, Licensing, and Treasury Operational Department of Bank Indonesia. Therefore, the licensing applicant could submit their application in paperless and tracking the application through E-Licensing Bank Indonesia.
Bank Indonesia Licensing FO
Based on PBI 22/2020, Licensing FO is licensing function in Bank Indonesia that directly contact the licensing applicant. The licensing FO has purposed to provide transparent, accountable, effective and efficient licensing services for the applicant.
The types of services provided by Licensing FO are license, approval, and service of monetary activity, macro-prudential, payment system, and rupiah management. The license and approval have been proceeded through E-Licensing Bank Indonesia. Moreover and according to PBI 22/2020, there is a type of services that cannot proceed through Licensing FO, which are:
- Approval of payment system service’s activity development, payment system service’s product development, and cooperation approval;
- Stipulation as a standard institution, a stipulation as services institution, and switching institution; and
- License/approval related to the establishment of the intermediary bank by Indonesian Deposit Insurance Institution.
License and Approval that Proceed through E-Licensing Bank Indonesia
According to the E-Licensing Bank Indonesia Official Website (https://www.bi.go.id/elicensing/), the types of licenses and approval that proceed through E-Licensing Bank Indonesia are as follow:
| License and Approval | |
| Categories | Remarks |
| Payment System Provider | IssuerAcquirerPayment GatewayElectronic Wallet (E-Wallet)Money Remittance |
| Payment Infrastructure Provider | PrincipalSwitching operatorClearance operatorFinal Settlement Operator |
| Financial Technology | |
| Regulatory Sandbox of Financial Technology | |
| Card Payment Instrument | PrincipalIssuerAcquirerClearance Operator and/or Final Settlement Operator |
| Electronic Money | PrincipalIssuerAcquirerClearance Operator and/or Final Settlement Operator |
| Non-Bank Money Changer | Could coordinate directly with Bank Indonesia Representative Office |
| Non-Bank Carriage of Foreign Money | Could coordinate directly with Bank Indonesia Representative Office |
| Financial Market | Negotiable Certificate of Deposit (Conventional/Sharia)Commercial SecuritiesMarket OperatorCertification Institution |
| Rupiah Management Service Provider | |
| Foreign Loan (Bank) | |
| Monetary Operation Participation |
General Licensing Procedures of E-Licensing Bank Indonesia
In general, licensing procedures of E-Licensing Bank Indonesia are consist of:
- Profile Registration in E-Licensing Bank Indonesia (User Administrator);
- Pre-Consultative Meeting Registration through E-Licensing Bank Indonesia;
- Document submission through E-Licensing Bank Indonesia;
- Administrative Examination (completeness and compatibility);
- Substantive Examination (completeness and compatibility);
- On-Site Visit, Presentation, Interview, and/or Fit and Proper Test (Based on the types of license); and
- License Issuance or Rejection.
Meanwhile, all correspondence related to the licensing application will be notified through email registered in E-Licensing Bank Indonesia.
Author: Kristalia Andiani Puteri
Gaffar & Co., Indonesian Boutique Law Firm which specializing and focus on commercial law areas e.g. Capital Market & Financial Services.
For further queries and information, contact us:
+62 21 2271 5060 | info@gaffarcolaw.com | www.gaffarcolaw.com
