Indonesia introduces the digital economy that has emerged as an attractive destination for digital businesses in the Asia -Pacific region (Apac).
According to In the 2024 electronic economic report by Google, Temasek and Bain and Company, the digital economy in Indonesia reached the total value of $ 90 billion in 2024, increasing 13 % from the previous year. By 2030, this value is expected to rise to $ 2,000 to 360 billion, and has solidified the status of the country as the largest and most dynamic digital economy in Southeast Asia.
In this landscape, digital finance services play an important role and show powerful growth. In 2024, the total trading value of digital payments (GTV) is expected to reach $ 440 billion, and has a 19 % YOY (YOY) growth.
Other segments, including digital wels and digital loans, have also given surprising performance, and the balance of assets (aum) and loan books under control has increased by 32 %, respectively.
Despite this powerful growth, Indonesian companies, especially in fields such as money laundering anti -money laundering (AML) and knowledge customer (KYC) compliance, are facing an increase in regulations.
The rules and standards are also changing to respond to how customers act and how they interact with the organization. These factors are increasingly strengthening to use technology such as electronic KYC (EKYC).
Indonesian AML/CFT regulations
Indonesia’s AML and terrorist funding (CFT) frameworks comply with some major laws, not only in banks, insurance, finTech, but also on real estate and art dealers.
Indonesian Bank (BI), three major regulatory authorities that supervise Indonesian AML and CFT compliance. PUSAT PUSAT PELAPORAN DAN Analisisaksi Keuangan (PPATK), a national financial information unit in charge of collecting, analyzing, and disseminating information related to suspicious financial transactions. OJK or Indonesian Financial Service Bureau. This is in charge of regulations and supervision of the financial service division.
Included in major AML/CFT regulations in Indonesia 2010 Act No. 8The Foundation for fighting money laundering and the 2015 government regulations No. 74 and OJK (OJK) guidelines by outlining corporate compliance requirements are detailed compliance procedures, transaction report protocols, We provide guidelines that provide risk -based supervision guidance. 。
These laws are obliged to implement strict measures, such as conducting customers, maintaining the accurate records, and recognizing and reporting suspicious activities in real time, maintaining accurate records in real time. Masu.
KYC is the basis of the Indonesian AML/CFT compliance framework, and you can check the client’s identity and guarantee that you are not involved in illegal activities.
under BI regulation number 3/10/PBI/2001Companies must implement a robust ID verification method and collect ID verification information such as housing address, date of birth, date of birth, biometric certification data or signature according to full name, ID document number, ID documentation. Accepted identification forms include government issued documents such as identification (KTP), passport, and driver’s license (SIM).
The rise of EKYC
With the rise of Fintech, Indonesia has adjusted the regulation framework to support EKYC, so that companies can use digital technology to remotely check customer identity.
OJK’s rules POJK No. 23/POJK.01/2019 For example, Designed Increases the effectiveness of AML/CFT measurement in the financial sector and includes provisions related to the EKYC process. This rule emphasizes the importance of digital identity verification and enhancement of duodure gem, preventing money laundering and financing terrorism, and implementing a robust identity verification system and document processing process by financial institutions. We emphasize the need to do.
On the other hand, the Act No. 11 of 2008 for electronic information and transactions I will manage The use of electronic information and transactions in Indonesia can provide legal framework for electronic trading and digital identity verification and apply to EKYC practice. This law guarantees that electronic documents and transactions are legally recognized and provide guidelines for safe and transparent digital interaction.
Finally, Act No. 27 of the 2022 Act on Protection of Personal Data teeth A comprehensive legal framework for protecting Indonesian personal data. The law emphasizes the importance of data privacy, security, and compliance of all entities that handle personal data, which implements the EKYC system.
This accelerated landscape has led to the emergence of a rapid growing EKYC ecosystem. It is currently composed of remarkable names such as Innov8tif and ASLI RI. Innov8tif offers an EMA EKYC solution that uses artificial intelligence (AI) to verify identity, but ASLI RI specializes in biological authentication. Service Major Indonesian clients including bank BRI, OVO, and KREDIVO.
Digital infrastructure that supports EKYC in Indonesia
Indonesia’s efforts to modernize identity verification and support EKYC have been further demonstrated in the development of IDITATAS KependUkan Digital (IKD) and digital groups.
IKD is accessible through a smartphone app, digitized major ID documents such as ID cards, family cards, and birth certificates so that users can check their IDs online without accessing the branch. This innovation, especially for a remote or non -service community, enhances management efficiency, reduces costs, and promotes comprehension.
IKD integrated with some major platforms, including SATUSEHAT DIGITAL HEALTH INA KU Public Service and INA GOV Civil Servant Portal Applications and Wondr Digital Bank, More than 12.3 million people。
The government is actively promoting adoption, Command Establish an adoption post at a branch to the public education campaign and the village level. In cooperation with state -owned companies and private companies, we are promoting the adoption of IKD between employees.
IKD is part of a wider identification (ID) for providing comprehensive services in the Indonesian project and digital transformation. the purpose In order to fill the registration gaps in areas that have not received sufficient services, we will enhance cyber security, modernize information and communication technology (ICT) infrastructure, and develop EKYC platforms and digital identity applications nationwide in Japan. Initiative Partially funded By A 250 million US dollars loans From the World Bank.
