ArticlesMobile AppsTechnologyE-Money: The Future of Cashless Life in Indonesia

Ratri AdityaraniSeptember 12, 2016
Indonesian cartoonist Mice describes how Indonesians grasp the utilization of e-money on every level. Picture credits to
Indonesian cartoonist Mice describes how Indonesians grasp the utilization of e-money on every level. –¬†Picture credits to

The use of electronic money in the world expanded rapidly in the last decade. Not only for reasons of practicality, but also considering the security issues related to the social conditions in the society. Electronic money or e-money is now encouraged to be more useful in people’s lives.

In Indonesia, the number of e-money usage is growing not only for practical use, but also as an impact of digital lifestyle that has been growing for the last two decades. The government supports this too by adding regulation and applying in public services.

e-Money in Public Transportation

In Jakarta and several big cities in Indonesia, the government supports the utilisation of e-money for public transportation. For example, TransJakarta busway and commuter line train encourage their passengers to pay using e-money. The government through the department of transportation is cooperating with several banks to issue public transportation payment through electronic card.

Same thing goes with the highway. At the toll gate, highway users has 2 options to pay, with cash or e-money (E-Toll). Although some drivers are still prefer the manual way, but the government pushed the e-Toll usage for more convenience and faster highway payment.

e-Money for Commerce

Recently during PON (Pekan Olahraga Nasional) – the national sport event in Indonesia, the government encourages public for using e-money for every transaction. PON committee collaborates with five national banks to issue electronic cards for better transaction during the 2-weeks event this September.

It seems that government intervention in e-money regulation has set the future of cashless Indonesia. The regulation of Digital Financial Services implementation has been carried out and will be revised as needed soon. The regulation emphasizes that the central Bank of Indonesia (BI) facilitates the payment system policy for financial institutions; they can register their Digital Financial Service (DFC) with more ease. Therefore, the number of legal DFC in the country can grow in a healthy competition.

As the economy grow, the public awareness for digital money will take Indonesia a step ahead in finance technology and mobile industry. The question is, are you ready?

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