BI Leaks All Transactions Through Payment ID, See Details
debate about the payment id system proposed by Bank Indonesia
Bank Indonesia (BI) is facing criticism regarding the plan to implement a transaction monitoring system through Payment ID. Although this system is expected to increase transparency and prevent abuse, many parties still doubt the readiness of the security infrastructure and clear rules. This led a number of figures to question the urgency of the implementation of the system, which is planned to be launched on August 17, 2025.
One of the members of Commission I of the DPR RI from the PDI-P, Sarifah Ainun Jariyah, suggested that the implementation be postponed. According to him, supervision through payment ID is vulnerable to security risks because the infrastructure is considered not ready. “We have to learn from other countries. Incentives, not coercion. Protection, not exploitation. Commission I of the DPR will continue to oversee this issue to ensure that the rights of citizens are protected,” he said.
What is Payment ID?
Payment ID is a transaction monitoring system that will be implemented for all Indonesian citizens. Each individual will have a unique payment identity that is integrated with the Population Identification Number (NIK). Thus, BI can monitor various types of transactions, including banking, multi-finance, online loans (Pinjol), to e-wallets.
According to the Director of the BI Payment System Policy Department, Dudi Dermawan, Payment ID is part of the 2030 Indonesian Payment System Blueprint (BSPI). “Payment ID is generated from NIK, NIK is generated from population data. So, all data in the bank will be related to the account number, there will be equivalents related to the payment ID,” explained Dudi.
Main Functions of Payment ID
Based on BSPI 2030, Payment ID has three main functions:
- Identification key: used to form the profile of the payment system actors.
- authentication key: used in the transaction processing process.
- Unique key: used in individual profile data aggregation with transactional data.
Dudi explained that the payment id can integrate all one’s financial activities. For example, BI can identify someone who has more than one bank account, has a loan in multi-finance, or has an e-wallet and pinjol account.
Suspicious Transaction Data January – June 2025
Data collected by PPATK shows the existence of suspicious transaction activities, including from non-banks such as e-wallets. Payment ID integration allows monetary authorities to know about payment activities, transfers, and all transactions. BI can also find out the nominal and source of a person’s income, as well as the obligations and debts that are being owned.
“This payment id is very powerful… this is much more accurate than a conventional rating system such as SLIK,” said Dudi.
Gradual implementation
BI revealed that the implementation of the payment ID will be carried out in stages starting in 2026. The Head of the BI Payment System Policy Department, Dicky Kartikoyono, stated that the initial stage will begin with experiments to test business models, mechanisms for formation, and utilization of payment ID.
This experiment will be carried out on a limited basis, among others, in the Use Case of Distribution of Social Assistance (Bansos) to support the government’s social assistance digitization program. Dicky explained that the payment ID will become a unique identifier that represents payment system actors, both individuals and entities.
The payment ID format consists of 9 alphanumeric digits formed based on the NIK or NPWP which is hashed with the latest encryption formula. The establishment and utilization of the payment ID will be carried out by taking into account the principles of data security in accordance with the PDP Law, including the approval of the individual data owners.
Benefits of step-by-step implementation
This gradual implementation is expected to provide benefits for various parties. First, for the government, this will support digital transformation programs and national economic growth. Second, for BI, this strengthens the capabilities of the central bank in maintaining the stability of the payment system. Third, for the industry, payment ID is a tool to ensure the integrity of transactions and a financial system that is built on trust.
For the community, the establishment of a payment history will support the expansion of access to financing and credit quality.
