Indonesia introduces foreign ownership limit in Electronic Payment Services Firms

On 9 November 2016, Indonesia introduced Bank Indonesia Regulation No. 18/40/PBI/2016 on the Operation of Payment Transaction Processing. This regulation imposes a 20 per cent limit on foreign ownership in companies that offer electronic payment services. The new limit applies to (1) new companies in the electronic payment services sector, (2) existing companies that expand into this sector, and (3) those existing companies (in this sector) that change ownership.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Services (Wholesale and retail trade, Financial and insurance activities)

• Sources:

  • Bank Indonesia (in Bahasa), Peraturan Bank Indonesia No. 18/40/PBI/2016 tentang Penyelenggaraan Pemrosesan Transaksi Pembayaran, http://www.bi.go.id/id/peraturan/sistem-pembayaran/Pages/pbi_184016.aspx, 14 Nov 2016
  • Reuter, Bank Indonesia limits foreign ownership in payment services firms, http://www.reuters.com/article/indonesia-investment-regulations-idUSL4N1DG271, 15 Nov 2016
  • Indonesia-Investments, Foreign Ownership in Electronic Payment Services Firms Curbed by Bank Indonesia, http://www.indonesia-investments.com/news/todays-headlines/foreign-ownership-payment-services-firms-curbed-by-bank-indonesia/item7361, 15 Nov 2016