Bank Indonesia (BI) plans to introduce a new transaction tracking system, Payment ID, on August 17, 2025, coinciding with Indonesia’s Independence Day.

The system is currently undergoing regulatory strengthening.

Dudi Dermawan, Director of the Payment System Policy Department at BI, said that Payment ID will serve as a unique identifier for financial transactions.

The system can track income and expenses and identify potentially risky activities, including online gambling and unauthorized loans.

Payment ID will use Indonesia’s national identification number (NIK), which is found on ID cards. It will be stored in a central database managed by BI.

To address privacy concerns, BI has established a consent mechanism requiring individual permission before allowing third-party access.

Users will receive notifications on their mobile phones for approval, ensuring data analysis occurs only after consent is granted.

This initiative aims to support financial services, including credit assessments and government aid distribution.

It will also protect user data through strict consent-based procedures.

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