The Covid-19 pandemic that engulfed the world has forced the public to be more open-minded toward the use of digital payment for daily necessities. Inevitably, there is a demand for micro, small and medium enterprises or MSMEs to quickly adapt to the new normal by implementing digital payment systems.
Assistant Governor and Department Head of Payment System Policy of Bank Indonesia Filianingsih Hendarta emphasized that digital payment system is one of the pillars in the digitalization of Indonesian MSMEs during the pandemic.
“Digitalization of MSMEs can be kicked off by digitizing the payment side. The pandemic conditions have accelerated the digital [transformation], as [businesses] must, and are forced, to do it. Ultimately, this will result in [a change in] customer experience and customer behavior as they are getting accustomed to it,” said Ms. Filianingsih during an online seminar titled “Utilizing Technology to Empower Indonesia’s SMEs” held by Artha Jasa in September 2021.
Furthermore, Ms. Filianingsih said that the digitalization trend, from the consumer side and the MSMEs, is growing fast thanks to more digital payment options, both in terms of variation and quantity. In addition, the shift in public preference, who are already familiar with doing transactions online from their own homes, is also driving digitalization of MSMEs.
“This also shows that digital economy transactions are growing due to increased acceptance of the public to the services. Banks have also transformed to offer convenience for their customers,” she continued.
With the Indonesian Payment System Blueprint 2025, Bank Indonesia (BI) provides a policy direction for payment system, in order to navigate the role of the payment system industry during the current era of digital economy and finance.
The blueprint states five visions of the Indonesian Payment System for the year 2025: Open Banking; Retail Payment System; Large Amount Payment System and Financial Market Infrastructure; Data and Digitalization; and Reformation of Regulations, Permits, and Monitoring. The blueprint will be manifested in the form of 23 key deliverables, which will be implemented gradually between 2019 and 2025.
One of the highlights of BI’s efforts on digital payment is the usage of the Quick Response Indonesia Standard (QRIS) for MSME’s and the general public. The central bank noted that currently there are around 8 million MSMEs merchants that are already integrated with QRIS. BI targets 12 million merchants to be integrated with QRIS by the end of 2021.
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