Bank Indonesia (BI)

Overview

Official Name: Bank Indonesia (Bank Sentral Republik Indonesia)

Establishment: August 17, 1953

Headquarters: Jl MH Thamrin No 2, Jakarta 10350, Indonesia

Country: Indonesia (ID)

Bank Indonesia (BI) is the central bank and monetary authority of the Republic of Indonesia. As an independent state institution, BI operates under full autonomy in formulating and implementing its duties and responsibilities, free from interference by the Government or other parties.

BI's overarching mandate encompasses three primary functions:

1. Monetary Stability – Maintaining the stability and value of the Indonesian Rupiah (IDR)
2. Payment System Stability – Regulating and developing a safe, efficient, and reliable national payment system
3. Financial System Stability – Contributing to macroprudential oversight and systemic financial resilience

As Indonesia's sole monetary authority, BI has exclusive authority to issue currency, conduct monetary policy operations, and establish binding regulatory standards for domestic payment systems and financial infrastructure.

Basic Identity

File: A133-ID-NAT-bank-indonesia.md

Created: April 5, 2026

Last Updated: April 5, 2026

Verification Status: [PARTIALLY VERIFIED]

Confidence Level: 95%

Classification: Public Regulatory Entity Profile

Regulatory Entity Registry ID: reg-id-nat-bi

Control Layer: Layer 1 (Binding Authority)

This profile is current as of April 5, 2026. Bank Indonesia regulations and policies evolve regularly. For the most current information, consult the official BI website at https://www.bi.go.id and review the latest regulatory announcements.

Requires verification from official sources markers indicate sections requiring confirmation against primary sources or updates based on current organizational information.

Classification

Inclusion Justification

What This Entity Oversees

Macroprudential Framework

Regulatory Architecture

Bank Indonesia shares financial system oversight responsibilities with the Financial Services Authority (OJK):

• BI Role: Macroprudential perspective – systemic risk from macro level
• OJK Role: Microprudential perspective – soundness of individual institutions

This division reflects law No. 21 of 2011 on Financial Services Authority, which transferred bank-by-bank supervision authority to OJK while BI retained systemic stability mandate.

Macroprudential Instruments & Tools

Capital & Reserve Requirements:

• Capital Adequacy Ratio (CAR) minimums set with BI guidance
• Macroprudential Intermediation Ratio (MIR) – BI requires banks maintain MIR between 84–94% (adjusted by capital adequacy level) to ensure asset liquidity and monetary transmission
• Capital Conservation Buffer (CCB) – counter-cyclical capital cushion
• Requires verification from official sources Countercyclical Capital Buffer (CCyB) for build-up phase

Credit & Leverage Measures:

• Loan-to-Value (LTV) ratios for collateral-dependent lending (real estate, auto, consumer credit)
• Requires verification from official sources Debt-to-Income (DTI) limits for consumer protection and systemic risk mitigation
• Requires verification from official sources Sector-specific credit growth limits during boom periods

Liquidity Management:

• Liquidity Coverage Ratio (LCR) requirements
• Net Stable Funding Ratio (NSFR) standards
• Requires verification from official sources Loan-to-Deposit (LTD) ratio guidance

Systemic Risk Monitoring:

• Stress testing and scenario analysis
• Concentration risk assessment (single borrower, sector, geography)
• Interconnectedness mapping and contagion analysis

Legal Authority

Expanded under Law No. 4 of 2023 (P2SK Law), which strengthened BI's macroprudential authority to implement binding regulations focused on systemic risk prevention and financial system resilience.

Payment System Consumer Protection

Bank Indonesia establishes consumer protection standards for payment systems participants under SNAP and broader payment system regulations.

Key Areas:

• Payment Processing Standards – Timely and accurate transaction execution
• Dispute Resolution – Standards for handling customer complaints and disputed transactions
• Data Security Requirements – Consumer information protection and breach notification
• Fraud Prevention – Anti-fraud standards for payment service providers
• Requires verification from official sources Liability Frameworks – Consumer liability limits for unauthorized transactions

Coordination with OJK

For bank customers and deposit protection, OJK is the primary regulator, with BI coordinating on:

• Payment system safety standards
• Fraud and operational risk in payment processing
• Systemic implications of consumer protection measures

Financial Inclusion

BI actively promotes financial inclusion through:

• SNAP framework (reduces barriers to fintech entry)
• Digital payment infrastructure development
• Requires verification from official sources Anti-money laundering (AML) standards balanced with financial inclusion goals
• Retail payment innovation guidance

Regulatory Powers

Regulatory Authority

Bank Indonesia holds binding enforcement authority over:

1. All licensed banks operating in Indonesia
2. All payment system participants (banks, fintechs, payment service providers)
3. Money changers and financial market infrastructure operators
4. Any entity participating in BI-regulated payment systems or settlement facilities

Enforcement Mechanisms

Administrative Sanctions (issued by BI or OJK as applicable):

• Monetary Penalties – Fines for regulatory violations
• Mandatory Orders – Directive to take or cease specific actions
• Business Restrictions – Suspension of specific activities or services
• Operational Suspension – Temporary suspension of payment system participation or services
• License Revocation – Permanent termination of authorization (in coordination with OJK for banks)

Corrective Actions:

• Required capital injections
• Dividend restrictions
• Management replacements
• Organizational restructuring mandates

Scope of Authority

BI enforcement authority extends to:

• Payment system operational standards and security
• Macroprudential regulation compliance
• Monetary policy transmission and implementation
• Interbank settlement and clearing rules
• Rupiah currency handling and distribution
• Foreign exchange transaction standards

Note: Bank-by-bank microprudential supervision (loan classification, provision requirements, asset quality) is OJK's responsibility; however, BI retains authority for systemic-level enforcement related to macroprudential requirements and payment system participation.

Regulatory Role and Function

Legal Foundation

Primary Legislation

Statute: Law of the Republic of Indonesia Number 23 of 1999 concerning Bank Indonesia (as amended by Law No. 3 of 2004 and Law No. 4 of 2023 on Financial Sector Development and Reinforcement - P2SK Law)

Legal Status: Constitutional central bank, independent legal entity with binding regulatory authority over payment systems, monetary operations, and macroprudential policy.

Key Legal Documents:

• Law No. 23 of 1999 on Bank Indonesia (BI Act) – Establishes BI as an independent institution with authority over monetary policy, payment systems, and financial system stability
• Law No. 21 of 2011 on Financial Services Authority (OJK Law) – Clarifies division of responsibilities between BI and OJK
• Law No. 4 of 2023 (P2SK Law) – Expands BI's macroprudential authority and reinforces financial sector development mandate
• Law No. 7 of 1992 concerning Banking (as amended by Law No. 10 of 1998) – Banking system regulation framework

Authority Classification: Layer 1 binding authority. BI regulations are mandatory for all payment system participants, licensed banks, and financial institutions subject to its jurisdiction.

Licensing and Authorization Relevance

Project Garuda – Digital Rupiah (CBDC)

Bank Indonesia launched Project Garuda to develop Indonesia's Central Bank Digital Currency (CBDC), known as Rupiah Digital.

Project Overview:

• Objective: Safeguard Rupiah sovereignty in the digital era while enabling modern payment infrastructure
• Governance: Designed as a wholesale CBDC initially, with future expansion to retail distribution
• White Paper: Published November 30, 2022, outlining vision and design principles
• Development Phase: Proof-of-concept completed December 2024, marking Phase 1 completion

Technical Architecture:

• Phase 1 (Completed Dec 2024): Wholesale CBDC for interbank transfers using distributed ledger technology
• Phase 2 (Current/Planned): Integration with digital securities testing
• Future Phases: Retail digital rupiah expansion for public use
• Technology: Requires verification from official sources Built on Hyperledger Besu (blockchain/distributed ledger) for wholesale infrastructure

Innovation - Backing Mechanism:

Latest development (2024–2025): Digital Rupiah will be backed by digital central bank securities (tokenized government bonds, Surat Berharga Negara - SBN), making it one of the world's first sovereign digital currencies with collateral backing similar to stablecoin mechanics.

Fintech Regulation & Innovation

SNAP as Fintech Catalyst:

• Standardized open API enables fintech integration with banks without proprietary negotiations
• Dramatically reduces entry barriers for fintech startups
• Promotes competition and innovation while maintaining systemic safety

Regulatory Approach:

• BI coordinates with OJK on fintech licensing and prudential oversight
• BI responsible for payment system safety and infrastructure standards
• Requires verification from official sources Regulatory sandbox provisions for fintech innovation testing
• Requires verification from official sources Crypto/digital asset guidance (with OJK coordination on investment aspects)

Data Sharing & Open Banking:

BI supports data sharing frameworks between banks and fintech companies to promote:

• Credit availability and alternative lending
• Payment innovation
• Financial service competition

Payments and Money Movement Relevance

SNAP (Standar Nasional Open API Pembayaran)

Bank Indonesia is the primary regulator of Indonesia's payment system infrastructure through its National Standard for Open API Payments (SNAP).

Regulatory Framework:

• Governing Regulation: Regulation of the Board of Governors (BI Reg) No. 23/15/PADG/2021 on Implementation of the National Standard for Open API in Payments
• Launch Date: August 17, 2021 (Indonesia's 76th Independence Anniversary)
• Scope: National standard mandating open payment API standards for all payment system participants

SNAP Key Components:

1. Interconnectivity & Interoperability – Standards enabling seamless integration between banks, fintechs, and payment service providers
2. Information System Security Standards – Data protection, encryption, and cybersecurity requirements
3. Good Governance – Operational standards and compliance frameworks
4. Risk Management – System resilience and contingency protocols

Purpose: SNAP dramatically reduces barriers to fintech entry by establishing a common API standard, enabling smaller fintechs to integrate with banking infrastructure without proprietary integration. This drives digital financial inclusion across Indonesia.

Management Transfer (2023): As of September 1, 2023, day-to-day SNAP management was transferred to ASPI (Association of Indonesian Payment System and Fintech), though BI retains ultimate regulatory authority and control over standards evolution.

Developer Support: Bank Indonesia operates the SNAP Developer Site providing published standards, technical specifications, data standards, and online sandbox environment for testing and compliance verification.

Other Payment System Regulations

QR Code Standards: BI has established cross-border QR payment standards to facilitate regional payment interoperability and reduce reliance on proprietary payment networks.

Domestic Interbank Systems: BI regulates and develops interbank information systems including clearing, settlement, and real-time gross settlement (RTGS) systems.

Settlement Finality: Requires verification from official sources BI establishes rules for settlement finality and novation in the national payment system to minimize systemic risk.

Policy Framework

BI operates as Indonesia's exclusive monetary authority, responsible for maintaining Rupiah (IDR) stability and implementing monetary policy using a flexible inflation-targeting framework.

Key Functions:

• Setting the benchmark interest rate (BI Rate) to guide monetary conditions
• Open market operations (OMO) including repo transactions and securities management
• Reserve requirement (Giro Wajib Minimum - GWM) regulation for liquidity management
• Currency issuance and management (IDR circulation and currency quality)
• Foreign exchange intervention and reserves management

Monetary Policy Instruments

1. Policy Rate: BI Rate – Primary instrument for signaling monetary stance
2. Reserve Requirements: GWM levels adjustable for foreign exchange and rupiah liquidity management
3. Open Market Operations: Securities trading, repo facilities, and standing facilities
4. Macroprudential Reserve Requirements: Requires verification from official sources Counter-cyclical buffers for systemic risk mitigation

Inflation Targeting

BI operates a flexible inflation-targeting framework with medium-term targets for Rupiah stability. The framework balances inflation control with exchange rate stability and real economic growth considerations.

Payment Systems Governed or Overseen

Bank Indonesia operates and/or oversees the national payment and settlement infrastructure of Indonesia. As of 2026, the key payment systems include:

Core Infrastructure Systems

Cross-Border Payment Integration

Retail and Digital Payment Systems

System Performance (January 2026 Data)

BI-FAST Growth Metrics:

• Monthly Volume: 455 million transactions
• YoY Growth: 34.41%
• Monthly Value: Rp1.176 trillion
• Average Settlement Time: Sub-second
• Fee Structure: Flat IDR 2,500 per transaction

QRIS Growth Metrics:

• YoY Growth: 131.47% (highest among national payment systems)
• User Base: 58 million registered users
• Merchant Base: ~40 million participating merchants
• 2026 Target: 60 million users (45M from merchants/MSMEs/young consumers)

BI-RTGS Performance:

• Monthly Volume: 0.86 million transactions
• YoY Growth: 7.60%
• Monthly Value: Rp19.555 trillion
• Settlement Type: Real-time gross settlement for interbank transfers

Market Size and Projections

Indonesia Payments Infrastructure Market:

• 2026 Size: USD 127.32 billion
• Projected CAGR (2026-2031): 9.83%
• 2031 Projection: USD 203.47 billion

Regulatory Framework

Payment System Regulation:

• BI Regulation No. 23/15/PADG/2021: Implementation of SNAP (National Standard for Open API Payments)
• Law No. 23 of 1999 on Bank Indonesia: Grants BI authority over payment system design, operation, and oversight
• Law No. 21 of 2011 on Financial Services Authority: Delineates payment system vs. institution-specific supervision boundaries

Settlement Finality:

Bank Indonesia establishes rules governing settlement finality and novation within the national payment system to minimize systemic risk and ensure transaction certainty once settled through BI-RTGS or designated clearing mechanisms.

Innovation and Development

Project Garuda (Digital Rupiah - CBDC):

• Phase 1 Completed: December 2024 (wholesale CBDC proof-of-concept)
• Phase 2 Current: Digital securities integration testing
• Future Phases: Retail digital rupiah expansion
• Technical Backing: Digital Rupiah backed by tokenized government securities (Surat Berharga Negara - SBN)
• Strategic Positioning: Safeguarding Rupiah sovereignty in digital economy

Sources:

• Bank Indonesia BI-FAST and QRIS Performance Report (Jan 2026)
• Indonesia Real Time Payments Infrastructure (2025)
• Bank Indonesia QRIS Cross-Border Expansion
• Indonesia Payments Market Outlook 2026-2031

Relationship to Other Regulators

Central Bank Cooperation

Bank for International Settlements (BIS):

• BI Governor serves on BIS committees and participates in global central bank policy coordination
• BI engages in Basel Committee discussions on banking standards, capital requirements, and financial stability

Regional Coordination:

• ASEAN Secretariat: Coordination on payment system interoperability across Southeast Asia
• Southeast Asian Central Banks Forum: Policy cooperation on regional financial stability
• Asian Development Bank (ADB): Participation in development finance and capacity-building initiatives

Bilateral Agreements:

• Currency swap lines with other central banks (arrangement with Bank of Thailand, Bank of Korea, others)
• Requires verification from official sources Cross-border payment system agreements for reducing settlement friction

Standards & Compliance

BI adopts and implements internationally recognized standards:

• Basel Committee Standards – Capital requirements, liquidity standards, market risk frameworks
• Financial Action Task Force (FATF) – AML/CFT standards implementation
• Committee on Payments and Market Infrastructures (CPMI) – Payment system standards
• International Organization of Securities Commissions (IOSCO) – Market infrastructure principles

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Headquarters

Address:

Jl MH Thamrin No 2

Jakarta 10350

Indonesia

Contact Information:

• General Inquiry Line: 131 (domestic, pulsa lokal) / 1500131 (international calls)
• Email: [email protected]
• Main Website: https://www.bi.go.id/en/default.aspx
• About BI: https://www.bi.go.id/en/tentang-bi/default.aspx

Organizational Structure

Governor (2025–2030):

• [UNVERIFIED - REQUIRES UPDATE] Perry Warjiyo served as Governor through 2023; confirmation of current/incoming governor recommended

Deputy Governors (2025–2030):

• Ricky Perdana Gozali – Deputy Governor (sworn in 2025, term 2025–2030)
• Requires verification from official sources Additional deputy governors – organizational structure change recommended for verification

Key Departments/Functions

BI Functional Areas:

1. Monetary Policy Department – Policy formulation and implementation
2. Payment System Department – SNAP management and payment infrastructure oversight
3. Financial System Stability Department – Macroprudential policy and risk monitoring
4. Regulation and Supervision Department – Regulatory standards and enforcement
5. International Department – Central bank cooperation and coordination
6. Currency Department – Cash currency issuance and management

Additional Resources

SNAP Developer Resources:

• SNAP Developer Site: https://snap.bi.go.id/ (portal with technical specifications, sandbox, compliance tools)

Digital Rupiah Project:

• Project Garuda Information: https://www.bi.go.id/en/rupiah/digital-rupiah/default.aspx
• White Paper (November 2022): Available via BI website
• Proof-of-Concept Report (December 2024): Published results available on BI website

Regulatory Publications:

• BI Regulations Database: https://www.bi.go.id/en/tentang-bi/profil/uu-bi/Default.aspx
• BI Press Releases & Announcements: https://www.bi.go.id/en/iru/highlight-news/Pages/default.aspx

Annual Reporting:

• Financial Statements and Annual Reports: Available via BI website (bilingual)

Notes on Naming and Language