On August 17, 2025, amidst the excitement of the 80th Independence Day celebrations, Bank Indonesia (BI) will mark a new chapter in the national payment system. On that day, the public will recognize Payment ID, a single identity for all digital financial transactions in the country.
Not a mere ceremonial launch, BI deliberately chose the moment of independence to mark the birth of a payment data infrastructure that is expected to accelerate economic digitization. In the initial stage, this system will be tested to distribute social assistance (bansos), before being used more widely.
Head of BI's Payment System Policy Department, Dicky Kartikoyono, said that this step is part of the Indonesian Payment System Blueprint (BSPI) 2030. "Payment ID is a unique code integrated with NIK, designed to detect the account owner's financial history in detail," he was quoted as saying by Antara.
The big goal is to build data systems aspublic goods to strengthen transaction integrity and support national policies.
What is Payment ID?
In simple terms, Payment ID can be referred to as a "financial ID card". It will be a single identity code that applies across banks, digital wallets, and other payment platforms. With this system, customers no longer need to repeat the verification process every time they open a new account.
Santoso Liem, Chairman of the Indonesian Payment System Association, gave a simple example of how this works. "If I have an account at one bank, then want to open it at another bank, just give consent, and my data can be shared directly between financial institutions. All are connected through one Payment ID," he said when contacted by SUAR by telephone (8/8/2025).
According to him, this concept is similar to the Social Security Number (SSN) in the United States, but with a more complex scope because it will combine data from various official identities, such as the Population Identification Number (NIK) and Taxpayer Identification Number (NPWP). Payment ID will apply across ecosystems, from banking to fintech, and contain comprehensive information about the owner's financial profile.
According to the Indonesian Payment System Blueprint launched by BI in early August 2024, Payment ID has three main functions:
- Identification key to form payment system actor profile data.
- Authentication key in processing transactions.
- Unique key aggregation between individual profile data and granular transaction data.
Benefits and solutions offered
For the industry and the public, Payment ID opens up significant efficiency opportunities. The process of opening a new account becomes much faster. Financial institutions can simply access the data that has been verified through Payment ID, provided that the customer gives consent.
Another advantage is protection from fraud. "If our money is transferred to a Payment ID that is indicated by a blacklist, there may be a delay in the transaction. This can minimize cyber scams," said Santoso.
Santoso sees the Payment ID concept as more than just an easy transaction. "Social assistance that is right on target because it meets the criteria is positive," he said. He emphasized that consumer protection and personal data protection rules must be the main footing.
According to him, the data between companies, individuals, and UMKM can clearly be distinguished. "UMKM have certain limitations, for example from turnover. Why is the tax calculated from the turnover? Because that's where the sales income comes from, for example 0.5%. From the Directorate General of Taxes, it will be adjusted," he explained.
For regulators, Payment ID strengthens their supervisory function. Nailul Huda, a Celios economist, said the system is similar to the Financial Information Service System (SLIK), but with the ability to read fund flows in real time. "Prospective creditors involved in online gambling or illegal activities will be read. The potential for monitoring money laundering and tax evasion also increases," he told SUAR on Friday (08/08).
In terms of financial inclusion, Payment ID allows people in remote areas to open access to banking services without repeated verification barriers. BI targets this to be part of the inclusivity strategy in BSPI 2030.
Challenges and risks
Nevertheless, the emergence of the Payment ID plan has been in the spotlight. On platform X, many netizens have highlighted this issue, ranging from concerns about financial privacy to potential links to taxes.
"August 17, 2025. BI will launch Payment ID. This is so bad... There is no privacy of financial data... They (Government) can see where our assets are," tweeted the @ba******yu account seen Sunday (10/8/2025).
Despite its promise, Payment ID also raises concerns. Data privacy is a major issue. Although Indonesia already has a Personal Data Protection Law (PDP), implementation and supervision remain crucial. "There must be derivative regulations that allow the public to report if data is misused," said Nailul.
Infrastructure is also a challenge. Developing a data processing engine capable of converting various identities into a single Payment ID requires time, money, and cross-agency coordination.
In terms of regulation, coordination between BI, the Ministry of Communications and Digital, and the Directorate General of Taxes is key. Taxation systems such as Coretax need to be updated so that data integration runs smoothly.
In line with Huda, Santoso acknowledged that consumer protection with personal data protection rules must be the main footing. Although the banking industry is ready to adapt, the success of Payment ID still depends on security and public trust. "If people are skeptical, adoption can be hampered," he said.
The industry, he added, will continue to communicate with Bank Indonesia to ensure that Payment ID is safe for public use. This is because the system will be connected to various digital payment methods, from mobile banking to internet banking.
Currently, BI is already running pilot projects and testing its public policies. According to Santoso, the Indonesian Payment System Association (ASPI) is directly involved to provide input, especially on maintaining security and consumer confidence.
Roadmap and future
According to BI, the development of Payment ID will be done in stages. This year, the focus is on the pilot project for social assistance. In 2026, BI began implementing the integrity use case, followed by the inclusivity use case in 2027. The target is that by 2029, the system will be fully integrated across the national payment ecosystem.
The BSPI 2030 Blueprint positions Payment ID as a public infrastructure that can be used by various parties, from the financial industry to policymakers. BI even envisions a "data as a service" model that allows third parties to access the data (with the owner's permission) for services such as credit scoring.
For the government, Payment ID is the foundation for building a transparent, efficient and inclusive financial system. For the industry, it opens up opportunities for more personalized and secure financial service innovation.
