A Closer Look at the Payment Infrastructure Provider (PIP) in the Banking System

The development of digitalization with payment system innovation is beneficial for increasing payment efficiency as well as accelerating digital economic and financial inclusion. On the other hand, digitization also helps increase the risk resulting from the complexity and increases the variety of business models for payment system providers.

Therefore, parties to assist society and government in making banking transactions, especially in the current digital era, are needed. In response to this need, the Payment System Infrastructure Provider or commonly known as (PIP) was launched. According to the Regulations of Bank Indonesia Number 23/7/PBI/2021, PIPs are parties that organize infrastructure as a means to transfer funds for the benefit of its registered members, among others:

• Reforms in banking system regulations, especially in payment systems, aim to find a balance point between efforts to optimize digital innovation in creating fast, easy, affordable, secure, and reliable payment systems, while considering the expanding access, stability, consumer protection, healthy business practices, and best practices in each applicable condition.

• This need is based on the development of innovation and business models in banking transactions as well as adjustments to the provisions of the applicable payment system.

• The development of payment infrastructure providers requires support from authorities and industry, regulation of access on and to industry, implementation, supervision, the end of the implementation, and process data or payment system information.

• Regarding the composition of share ownership, this payment system can pave the way for foreign investors to enter the payment services industry.
  
  

Along with the growing need for transactions in Indonesia, arrangements or systems to protect transactions from cyber-attacks are needed. Cyber-attacks are one of the main risks that need to be learned and mitigated primarily by financial service providers in this digital era. To anticipate these risks, the role of society, financial service providers, and government, as well as strategies are needed.

In dealing with developments and in accordance with the 2025 Indonesian Payment System Blueprint (BSPI) roadmap, PT Jalin Pembayaran Nusantara (Jalin) as the Payment Infrastructure Provider (PIP), supports the acceleration of payment system digitization by strengthening infrastructure and product innovation as well as enhancing security features in financial services.