Jalin’s Five-Year Celebration Strengthens the Commitment of Jalin and Members to Synergize in Building a Payment Ecosystem

Jalin’s Five-Year Celebration Strengthens the Commitment of Jalin and Members to Synergize in Building a Payment Ecosystem

On Tuesday, November 23rd, 2021, PT Jalin Payment Nusantara (Jalin) celebrated ​the five years of the founding of Jalin, which was attended by all Jalin’s family and members online. This celebration is also momentum for Jalin with Himbara, Affiliate of Himbara, BPD, Commercial Banks, Sharia Banks, and Fintech to strengthen their commitment to synergize in building an effective and efficient Indonesian payment ecosystem.

This year’s celebration was wrapped in the Jalin5ary Gather Together With Member event and took on the Virtual Trip theme with three locations representing Jalin members. The three locations are KM 0 in Sabang to represent Bank Aceh Syariah, Lake Toba to represent Bank Sumut, and International Circuit Mandalika to represent Bank NTB Syariah.

Boyke Yurista, President Director of Jalin, said, “It’s been five years since Jalin has provided services for members and the community. It’s a meaningful journey for us. Jalin exists and grows to synergize with Himbara, Affiliate of Himbara, BPD, Commercial Banks, Sharia Banks, and recently many friends from Fintech, to make transactions easier for the public. Therefore, we thank you very much for the trust of our Member friends in collaborating with Jalin as a switching business provider and ATM managed service.”

The Jalin5ary Gather Together with Member celebration event also became more exciting with Mrs. Filianingsih Hendarta, Assistant Governor of Bank Indonesia, who became guest speaker in a business talk with the topic “Digital Collaborative Ecosystem & Indonesian Payment Outlook 2022.”

A series of entertainments also enlivened the celebration of Jalin’s fifth birthday, such as the well-packaged Regional Dance from Team Roro, the regional clothes dress code, and door prizes with attractive prizes.

We want to express our gratitude for the support of all stakeholders who have participated in this virtual event and hope that the well-established cooperation will always be maintained and will continue to grow in respone to the challenges ahead. See you at the next birthday celebration!


Role of Payment Gateways in Online Business in Indonesia

Role of Payment Gateways in Online Business in Indonesia

Financial industry that is integrated with technology is like a vast ocean where players can get astray if they do not know the position and direction of their business goals. Among the pool of technology solutions, payment gateways emerge as one of the business niches that found a firm ground in the middle of the vast ocean and contributes as one of the drivers of online business trends in Indonesia.

A payment gateway is a key component of an electronic payment processing system, and merchants use it to process cashless payments made by buyers. Processed payments do not include payments via physical cards such as debit and credit cards but also via virtual accounts and interbank transfers found in e-commerce services.

The payment gateway working principle is simple. It will act as a third-party software responsible for sending customer information to the merchant’s bank, where the transaction is then processed. In the process, the software will create pathways that can be used to transmit customer, bank, and merchant sensitive information.

Technology used by payment gateway services is also constantly evolving with changing consumer preferences and technical capabilities. In the past, a terminal would accept payments using credit/debit cards that used magnetic tape and required the customer’s signature.

However, this technology has changed to cards that have chips and require customers to enter a PIN into the hardware for identification. In recent years, brick-and-mortar payment gateways have also developed and can accept payments using QR codes such as QRIS or Near Field Communication (NFC) technology.

Payment gateway architecture will also differ depending on the platform used by the merchant. If the merchant uses an online service, an application programming interface (API) is required so that the respective website can communicate with the underlying payment processing network. As for offline services, such as in-store, the payment gateway will use a Point of Sales (POS) terminal connected to the payment processing network electronically using a telephone line or Internet connection.

Payment gateway security system must also be firm because it must protect the sensitive information sent. At least three security standards must be present in a payment gateway service, namely:

  • Address Verification System is used to automatically verify customer bills according to data entered, such as phone numbers, emails, credit cards, or other billing addresses. Billing details will be checked and adjusted to the officially registered data with this system
  • Card Security Code is a system that makes transactions only processed if they have the last three digits of a credit/debit card number.
  • 3D Secure Password is a layered security system that protects the customer’s credit/debit card from unauthorized use. In practice, it will display a window from the card issuer used by the customer to enter a PIN or special code when making online payments on the web.


Payment gateway in Indonesia and its benefits for online business


When e-commerce began to develop in Indonesia, payment gateway services were almost nowhere to be found. Only one or two companies ran this line of business and assisted e-commerce services as the party authorizing credit card payments and other online transactions.

However, the rapid development of the internet and the e-commerce industry in Indonesia has ultimately encouraged the growth of other businesses, including the payment gateway. Various players from various parties with different scales originating from within and outside the country finally emerged and participated in the competition in this market.

The rapid growth of the payment gateway business is not without reason. Its presence in the Indonesian market is a breath of fresh air for customers and merchants because it offers the convenience of processing cashless payments, both using cards and online.

There are at least six benefits for merchants when they decide to use a payment gateway as a support for a cashless payment system, namely:

  1. Adding options for payment method that can be used
  2. Speed up the transaction process
  3. Guaranteed transaction security
  4. Expand market reach
  5. No transaction limit
  6. Allows multiple transactions to occur at one time

However, this rapid growth has also created problems of complexity and service fragmentation, which are contrary to the principles of interconnection and interoperability that Bank Indonesia wants to achieve. Therefore, Bank Indonesia and the payment system industry initiated the National Payment Gateway (GPN) in 2018 to create a national retail payment ecosystem optimally connected with the principles of interconnection and interoperability.

GPN is built through a set of rules and mechanisms (arrangement) to integrate various payment instruments and channels nationally. GPN is the basis for the implementation of switching interconnection, interoperability and interconnection of payment channels through ATM channels, Electronic Data Capture (EDC), agents, Payment Gateways (PG), and other payment channels, as well as interoperability of payment instruments in the form of ATM cards and/or debit cards, credit cards, electronic money, and other payment instruments.

The GPN organizers are divided into three agencies, Standard Agencies, Switching Agencies, and Services Agencies. The Standards Institute has the function of compiling, developing, and managing standards in order to ensure the interconnection and interoperability of payment instruments, payment channels, and switching, as well as security. Switching Institutions have a function to process payment transaction data domestically in the context of interconnection and interoperability. The Services Agency has the task of maintaining the security of payment transactions and the confidentiality of customer data, conducting reconciliation, clearing, settlement, and developing systems for fraud prevention, risk management, and risk mitigation.

One of the seasoned switching agencies that carry out switching activities for GPN is PT Jalin Payment Nusantara (Jalin). Since obtaining a license as a GPN switching agency in 2019, Jalin is always committed to ensuring seamless payment processing by providing leading payment system infrastructure and secure payment channels. This is in line with the principles of interconnection and interoperability that Bank Indonesia wants to realize so that people can connect to the financial ecosystem safely, easily, quickly, and efficiently.

Jalin Supports Community Digitization Acceleration Through the “Bangga Wisata Indonesia” (BWI) Program and Jalin Smart Library

Jalin Supports Community Digitization Acceleration Through the “Bangga Wisata Indonesia” (BWI) Program and Jalin Smart Library

Jalin’s Corporate Social Responsibility (CSR) program this year focuses on supporting social programs that aim to accelerate digitization at every step of Indonesian society, in line with the tagline “In every step of your digital way” used in the company’s fifth anniversary.

The realization is accomplished through two major programs: supporting the BWI program run by the Ministry of Tourism and Creative Economy, and building the Jalin Smart Library at the Sekolah Alam Tunas Mulia in Bantar Gebang. The two social programs are part of a five-year journey achievement celebration of Jalin’s support for Indonesia’s digital payment system and the realization of an inclusive financial ecosystem.


Reviving the Passion of the Tourism Industry Through the BWI Program


Jalin’s Social Program to Support Transaction Digitization


The BWI program is one of the government’s initiatives, spearheaded by the Ministry of Tourism and Creative Economy (Kemenparekraf), aimed at reviving the domestic tourism industry, which has been harmed by the COVID-19 pandemic. The BWI program has been in execution since October 7, 2021, with a travel incentive scheme for MPV (Vaccine Recipient Communities).

The public who has received two vaccination doses can receive a benefit (one-time use) in the form of a discount when purchasing specific tour packages. The benefit is available through 75 registered channel partners and specific destinations (Bali, Jakarta, Riau Islands, and Yogyakarta).

Jalin provides a web-based hub adapter platform and API to provide seamless access so that all users involved can connect and communicate with each other without major issues. As a result, MPVs that want to travel can receive government incentives smoothly, which will have an indirect impact on the tourism industry.

The platform developed can be used to manage work programs, channel partner registration and verification, tour package registration, validation of MPV data via the Peduli Lindungi application, the process of reporting transactions for purchasing tour packages by MPV, processing stimulus claims from Channeling Partners to the Ministry of Tourism and Creative Economy, and the stimulus disbursement process.



VP Corporate Secretary of PT Jalin Payment Nusantara Christianus K. Panjisasongko hopes that this reactivation program for the tourism industry can provide a multiplier effect on economic recovery by two times in priority areas of tourism destinations. In addition, the developed platform hoped can continue to be used by Kemenparekraf/other Ministries for stimulus programs that have similar functions as a form of Jalin’s contribution to the national economic recovery.

Aside from Jalin, other agencies that collaborate to support the BWI program include PT ENCPRO as program operations, PT Blend Media as program consultant, Peduli Lindungi as MPV data validator, Bank Mandiri as stimulus disbursement infrastructure provider, and 75 Travel Agencies as Channel Partners.


Establishing Digitization in Every Step of the Country’s Children Through Jalin a Smart Library


Jalin’s Social Program to Support Transaction Digitization


In addition to providing support for the BWI program, Jalin also assisted in the construction of the Jalin Smart Library at the Tunas Mulia Alam School in Bantar Gebang, which will provide Indonesian children with unlimited digital access.

The provided support comes from the synergy between Jalin and employee donations consisting of library renovation, provision of PC devices, internet network, procurement of hundreds of physical and digital books through e-library subscriptions, to other learning support tools such as tables and chairs.

The inauguration of the Jalin Smart Library coincided with the celebration of Jalin’s fifth anniversary on November 19, 2021. This inauguration was carried out directly by Boyke Yurista as President Director of PT Jalin Payment Nusantara and Juwarto as Chair of the Tunas Mulia Alam School Foundation at the Jalin5ary celebration.

Christianus said that the Jalin Smart Library program remains consistent with the non-cash payment education program that has been promoted on a regular basis for the past three years. “This is an example of Jalin’s contribution to introducing a non-cash transaction lifestyle to children at a young age through digital channels. The goal is to instill new, healthier, and safer purchasing habits.” added Christianus.

Jalin had also provided similar assistance to students at the school the previous year. The assistance included projectors, hundreds of e-money cards, and non-cash payment e-learning videos to support teaching and learning activities.


CIMB Niaga and JALIN cooperate to increase customer banking transactions

CIMB Niaga and JALIN cooperate to increase customer banking transactions

JAKARTA. On Monday, November 8, 2021, PT Bank CIMB Niaga Tbk (CIMB Niaga) signed an online collaboration agreement with PT Jalin Payment Nusantara (Jalin). CIMB Niaga collaborated with Jalin to expand the scale of banking transaction volume, as Jalin’s switching services under the brand “Link” operate one of the largest ATM networks in Indonesia today.

Lani Darmawan, CIMB Niaga Consumer Banking Director, stated that the relationship between CIMB Niaga and Jalin benefits both parties (mutualism). In this circumstance, CIMB Niaga can use all Link network channels to give consumers convenience and comfort when executing financial operations. From cash withdrawals to balance checks and fund transfers, all banking channels integrated into the Link switching network are available.

“We can improve operational efficiency while providing more benefits to customers by partnering with Jalin. It also forms part of our commitment to the cashless society movement “Lani stated.

Boyke Yurista, CEO of Jalin, welcomed CIMB Niaga, Indonesia’s second-largest national private bank, as a member of Jalin. This is a positive trend in the atmosphere surrounding Jalin’s 5th birthday, which occurred yesterday, November 3, 2021.

“We will continue to provide the best service to all Jalin switching service members so that all of our members can increasingly provide a better, faster, and safer transaction experience for all customers, including the Indonesian people in general.”

Boyke added, Jalin is committed to providing guaranteed safe and efficient financial transaction services to all CIMB Niaga customers and other members. The collaboration will provide benefits for the implementation of transactions carried out via electronic media channels, such as transaction management services via ATMs, as well as facilities and services that Jalin will develop in the future.

Jalin’s decision to become The National Digital Highway aligns with CIMB Niaga’s intention to make digitalization the Company’s primary strategy. CIMB Niaga expected digitalization to be a driver of business growth, along with a shift in the behavior of Indonesians who increasingly use digital channels for financial transactions.

CIMB Niaga is continuing to develop digital-based products to supplement the services offered by branch offices. As of September 30, 2021, digital banking services such as OCTO Mobile, OCTO Clicks, BizChannel@CIMB, Automated Teller Machines (“ATM”), and Mobile Accounts accounted for 96 percent of total customer transactions.

“Jalin is also targeting double-digit revenue growth in 2021 from Switching ATM Link, Switching Debit Link, Switching QRIS, and Managed Services to prepare Jalin for challenges in the coming year by developing new digital-based products and services that will be released next year,” Boyke said.

5 Years of Jalin Giving More Meaning in Every Step of Your Digital Way

5 Years of Jalin Giving More Meaning in Every Step of Your Digital Way

November 3, 2021, marks the five-year journey of PT Jalin Pembayaran Nusantara (Jalin) in Indonesia, who continues to play an active role in realizing the efficiency and sovereignty of the national payment system. Now, Jalin is ready to take a step forward in realizing its vision to become The National Digital Highway that provides convenience and more meaningful digital transaction experience in every step of the Indonesian people.

Jalin was established on November 3, 2016, by the initiative of the Ministry of SOEs, Telkom Indonesia, and the Association of State-Owned Banks (Himbara), namely BNI, Bank Mandiri, BRI, and BTN. Jalin’s business move began in 2017 when it obtained a Principal License for ATM Switching and a Principal License for Debit Switching and Clearing. Then, since June 19, 2019, following the direction of the Ministry of SOEs, Jalin’s majority shareholder changed, which was owned by Telkom Indonesia to PT Danareksa (Persero).

This is part of Jalin’s strategic step to support the cashless society movement promoted by the Government since 2014. As a starting point, Jalin provides two primary services, namely ATM switching and Debit switching with the “Link” brand to facilitate inter-bank transactions anytime, anywhere.

In 2018 Jalin obtained Operational Approval for the BI-RTGS System Participation. In the same year, Jalin continued its innovation by preparing ATM Managed Service business. This service was officially launched on January 1, 2019 and became one of Jalin’s core businesses in addition to switching services.

The ATM Managed Service is an innovation to provide support in managing ATMs owned by banks that are members of Jalin. The scope includes the maintenance of ATM machine and ATM cleanliness. This is in accordance with Jalin’s mission to support the management of technology-based national banking physical channels, thereby providing efficiency and increasing service security for Jalin bank members.

A new milestone in Jalin’s journey as a Switching Institution occurred in 2019 when the company received a permit as a QRIS operator by Bank of Indonesia (BI). QRIS (Quick Response Code Indonesian Standard) is a national QR code standard to facilitate digital payments through server-based electronic money applications, digital wallets, or mobile banking.

Through QRIS, QR code operators can be interconnected and interoperable. To support the implementation of the BI QRIS program, Jalin partners with several PJSPs (Payment System Service Providers) consisting of Banks and Non-Banks who are members of Jalin’s QR Switching service.

In 2020, Jalin also played an active role in supporting the merger process of 3 government-owned Islamic banks into Bank Syariah Indonesia (BSI), at the direction of the Vice President of Indonesia. This support was carried out through the integration of information technology systems of Bank Syariah Mandiri, BNI Syariah, and BRIS during the interim merger to become BSI.


Strengthening Foundations and Elevating Growth Value


Now, in its fifth year, Jalin is ready to transform into a digital enabler that connects people with financial and non-financial ecosystems. Titled “Jalin5ary” (Jalinfiversary), the number 5 in the logo reflected the spirit of the fifth anniversary, which combines blue and red colors with dynamic shapes and symbolizes digitization.

The tagline “In Every Step of Your Digital Way” complements the logo as a reflection of Jalin’s commitment in presenting a variety of new payment service innovations. Three main keywords make up this tagline; We Grow, We Transform, and We Make It Happen, which contain the mission of strengthening the foundation and elevating the growth value.

We Grow is a strategic step that becomes the initial foundation to face the era of digitalization and the changes of Jalin business landscape. The fundamental thing to do was by defining a new corporate culture, marked by the launch of JalinID culture on Jalin’s fourth anniversary. A year since its implementation, now JalinID plays a pivotal role in shaping the character of Jaliners who are more capable, synergistic, and resilient in facing changes due to business challenges and the pandemic.

We Transform is Jalin’s initiative in facing challenges in the VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) era in order to grow. This is marked by organizational transformation to strengthen the foundation and Jalin’s active involvement in various national economic development synergies initiatives, which is realized through the cross-border QRIS payment system and PMO Shared Service.

We Make It Happen is Jalin’s commitment in realizing an interconnected, interoperable, and efficient payment system in Indonesia, along with the technological advances and the increased mobility of people. This is presented through the addition of Link network members which currently have 31 members consisting of banks and non-banks, various business synergies with industry players, as well as investments in digital innovations.

To support interbank transaction infrastructure, Jalin also synergizes with BUMN and Himbara in developing various service features for Jalin member banks, including Himbara. Digital innovations and physical channels such as Automated Teller Machines (ATM), Cash Deposit Machines (CDM), and Cash Recycling Machines (CRM) are also being developed so that people’s financial activities can be more convenient.

Entering the fifth year, Jalin will continue its active contribution in realizing efficiency of the national payment ecosystem. At the same time, Jalin supports the Government’s program in expanding payment services that reach all corners of the country. Supported by business activities based on effective and good corporate governance, in the future Jalin will be more ready to accompany people’s every step of digital transaction way.

Understanding Local Currency Settlement in Bilateral Transactions

Understanding Local Currency Settlement in Bilateral Transactions

In 2018, Indonesia initiated monetary cooperation with two ASEAN countries marked by the Local Currency Settlement framework as a foreign currency exchange system. The two ASEAN countries are Malaysia and Thailand. Now, the implementation of this monetary policy continues to be pushed and has spread to Japan and China.

Local Currency Settlement (LCS) is the settlement of bilateral transactions carried out by two countries using the local currency prevailing in each country. This policy aims to reduce dependence on the US dollar currency for bilateral trade transaction settlement and maintain the stability of the local currency value.


LCS Implementation

The implementation of LCS is established through the cooperation of the central bank in each country. Then, the central bank appointed several banks in their respective countries to be an Appointed Cross Currency Dealers (ACCD).

The banks designated as ACCD are banks deemed to have the ability to facilitate transactions in foreign currencies following the agreed LCS cooperation framework. There are three basic judgments in the appointment of ACCD banks.

First, the bank was considered to have a good level of business resilience and health. Second, they are experienced in facilitating trade/investment transactions and can provide various financial services. Third, having good cooperative relationships with banks in partner countries.

As the central bank in Indonesia, Bank Indonesia initiated this LCS collaboration with Bank Negara Malaysia (BNM) and the Bank of Thailand (BOT). Then, LCS cooperation expanded in 2020 through an MoU signed between the Ministry of Finance of Japan and Bank Indonesia. Most recently, Bank Indonesia (BI) and the People’s Bank of China (PBC) officially started the LCS cooperation implementation on September 6, 2021.

There are four types of transactions facilitated by LCS, namely:

  • Trade in goods and services between Indonesia and partner countries (receipt of import/export payments).
  • Primary income transactions, such as receipt and payment of labor compensation transactions, as well as investment income (direct investment, portfolio investment, and/or other investments).
  • Secondary income transactions, such as remittances that include receipts and payments from the government sector or other sectors. except for grants, prizes, donations, and/or the like.
  • There is a direct investment between Indonesian LCS customers and LCS customers from partner countries, with a minimum limit. 10% ownership of the company.

Innovative Steps in Strengthening the Positively Welcomed Econmy

Before the LCS cooperation framework formed, bilateral trade transactions always used US dollars in the payment system. For example, if an Indonesian entrepreneur wants to trade with a Thai entrepreneur, they must convert Rupiah into dollars first and then exchange it for Bath currency, and vice versa.

That situation makes trade and business activities between the two countries inefficient because it takes more time to convert their money into US dollars. In addition, the currency exchange practice can also impact the value of the dollar to strengthen, which can indirectly make the local currency depressed.

Therefore, many parties gave a positive response when Bank Indonesia initiated the LCS cooperation framework. It is because the LCS cooperation framework considered providing many benefits for business players, such as:

  • Without cross-rate with US dollars, transaction conversion costs become more efficient,
  • Availability of alternative export financing/direct investment in local currency,
  • Availability of alternative hedging instruments in local currency, and
  • Diversification of exposure to currencies used in settlement of transactions.

Doddy Zulverdy, Executive Director and Head of Department of Bank Indonesia, explained that the implementation of LCS with partner countries has shown a positive trend. The application of LCS from Indonesia’s total trade with Malaysia in 2018 only reached 1.4 percent. In 2019, the share rose to 3.6 percent and 4.1 percent in 2020.

The same thing happened with Thailand. In 2018, the implementation of LCS only reached 0.6 percent. Its market share increased to 1.1 percent in 2019 and will rise to 1.3 percent in 2020.

In Japan, this upward trend is also visible. The portion only reached 0.7 percent in the first three months following the signing of the LCS agreement in 2020.It increased by 3.4 percent in the first six months of 2021.

The LCS policy is one of the innovative moves from Bank Indonesia’s many policies to create a better economy. The presence of LCS is also a breath of fresh air for business players because now they can use their respective countries’ currencies in completing bilateral transactions.

Thus, the dependence on the US Dollar currency for bilateral trade transactions settlement is expected to be reduced. In the end, this will help the country maintain the stability of the local currency value.