August 11, 2025 | 01:30 pm
Indonesia's digital payment system will implement the Payment ID system on August 17, 2025. A financial system launched by Bank Indonesia (BI) that utilizes the citizens' unique identification numbers (NIK) as a means of recording all individual financial transaction activities.
"Payment ID will be the foundation of a transparent and accountable payment system," said Dudi Dermawan, the Director of BI's Payment System Policy Department on Friday, July 18, 2025.
This digital financial system is an accumulation of numerous financial transaction data from the public that are dispersed across various platforms.
The Payment ID system is said to bring significant benefits to Indonesia's economy by strengthening financial transparency among financial institutions. Moreover, any illegal digital transactions, including online gambling, money laundering, and terrorism funding, can be more easily traceable.
One of the widespread benefits that Payment ID offers to the public is the assurance of transaction security. According to Nailul Huda, the Director of the Digital Economy Center of Economic and Law Studies (Celios), Payment ID will help safeguard the financial transactions of every individual, as the system can only be accessed by authorized parties working in conjunction with BI according to their respective authorities.
Government Social Assistance (Bansos) to be Distributed via Payment ID
The Minister of Social Affairs, Saifullah Yusuf, stated his approval of the government's trial of Payment ID as a distribution medium for social assistance (bansos) on August 17. "Yes, we are involved with DEN (National Economic Council). Our team is there, and we agree," said Saifullah while inspecting the Sekolah Rakyat Menengah Atas 10 Jakarta, South Jakarta, on Saturday, August 9, 2025.
Saifullah expressed his hope that the distribution of social assistance can be targeted and timely. According to him, one way to achieve effective distribution is through digitalization. "Hopefully, in the future, our data will be more accurate, and the recipients of social assistance will be truly deserving. That's the essence," he said.
Furthermore, this financial system will use a unique identification code that is also confidential. With this unique code, it is hoped that the public will experience payment efficiency in the future. With Payment ID, eligible recipients of social assistance can also be assisted in ensuring that their social benefits are not claimed by others.
So far, BI has been conducting trials of Payment ID in the distribution of non-cash social assistance. Ramdan Denny Prakoso, the Executive Director of BI's Communications Department, said, "BI will carry out a trial process for a specific use case, namely to assist the accuracy of non-cash social assistance distribution, which will commence on August 17 to support the social protection program."
Anastasya Lavenia Yudi and Putri Safira Pitaloka contributed to this article.
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