JAKARTA (Yosefardi) – Central bank (Bank Indonesia/BI) amends the implementation schedule of the national standard for chip technology and online 6-digit PIN for ATM/Debit card transaction.
In alignment with the use of the chip, the central bank also increases the maximum limit of cash withdrawals and transfers for ATM/Debit card equipped with the chip.
Where previously the operators of ATM/Debit card are obligated to implement chip and online 6-digit PIN technology on ATM/Debit card transactions by 31st December 2015, the adjusted implementation schedule extends the obligation to 31st December 2021.
Concurrently, the implementation of online 6-digit PIN technology on ATM/Debit card that currently uses magnetic stripe technology is extended to 30th June 2017.
For ATM/Debit cards that has already equipped with the chip technology, Bank Indonesia raises the maximum limit of interbank transfer transactions using ATM cards through ATM terminals to Rp50.000.000 (fifty million rupiah) per account in one day, and the maximum limit of cash withdrawal using an ATM Card through ATM terminals to Rp15.000.000 (fifteen million rupiah) per account in one day. This provision is effective since 30th December 2015.
By 31st December 2021, ATM/Debit card issued by Issuer in Indonesia as well as its terminal and processing means are obligated to use national standard chip technology agreed by industry and decided by Bank Indonesia.
Issuers may continue to use magnetic stripe technology for deposit account with a maximum balance of Rp5.000.000 (five million rupiah) based on a written agreement between the issuer and its customer.
Concurrently, international ATM/Debit card transactions, including cards magnetic stripe technology, can still be processed in Indonesia, both in use at the ATM terminal and EDC.
The extension of the implementation schedule of national ATM/Debit card standard is enacted after considering: the use of chip technology is one of Bank Indonesia’s policy strategies to improve the security of card-based payment instrument (APMK), the implementation of the national standard chip technology for ATM/Debit card is required to improve the efficiency of ATM/Debit card transactions, and the harmonization of chip technology and online 6-digit PIN implementation period of ATM/Debit cards with the Payment System policy in the future.
In addition, the majority of ATM/Debit card Operators have yet to fully implement the national standard chip technology and online 6-digit PIN, and the migration from magnetic stripe technology to chip technology administered by the Operators of ATM/Debit Card may be encouraged by policies that provide incentives towards the utilization of cards equipped with the chip technology.