Bank Indonesia Limits Foreign Ownership in Payment Services Firms

Jakarta. Indonesia’s central bank has put a 20 percent limit on foreign ownership in companies that offer electronic payment services in a bid to better regulate such services amid growing interest in financial technology.

The limit was set by Bank Indonesia (BI) for companies operating as card providers or offering switching, clearing or settlement services for electronic payments.

According to the new rules, signed last week, every company offering payment system services also must obtain a permit from Bank Indonesia (BI).

The rules were set to ensure that all companies maintain “the principles of prudence and adequate risk management” in accordance with national interests and consumer protection, BI said.

The new foreign ownership limit applies only to new investment, or to any existing firm who is changing ownership.

Reuters

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