The Central Bank of Indonesia is finalizing the new project – a digital payment tracker that will assist in monitoring suspicious and potentially risky activities.
Bank Indonesia (BI) is set to launch a new digital transaction tracking system called Payment ID on August 17, 2025, aligning the rollout with the country’s Independence Day.
The initiative is currently in the final stages of regulatory refinement and strengthening the in-built mechanisms to address privacy and data security concerns.
The upcoming system will be linked to individuals’ national identification numbers (NIK), as listed on their official ID cards. According to Dudi Dermawan, Director of the Payment System Policy Department at BI, the Payment ID system will assign a unique identifier to each financial transaction. This will make it easier for authorities and financial institutions to monitor payment flows, track both income and expenditures, and improve transparency across the financial system.
Using this payment tracking tool, local authorities hope to enhance financial oversight and better detect suspicious activities, including illegal online gambling and unregistered lending services. By providing deeper visibility into digital transactions, the system is expected to strengthen consumer protection, support financial integrity, and help curb financial crimes. These are some of the key priorities for BI, as Indonesia accelerates its digital financial transformation.
At the same time, consumers and financial institutions alike may have concerns about the security of the sensitive data stored in a centralized database and user privacy. In response, the regulator states that it has built a consent-based framework into the system. Any third-party access to a user’s data, e.g., for credit scoring or fintech services, will require explicit permission from the individual. Users will receive real-time mobile notifications to review and approve any data-sharing requests, ensuring that analysis only occurs after consent is given.
The initiative is intended to support a range of financial services, such as credit evaluations and the distribution of government subsidies, while maintaining a strong emphasis on data protection and individual control. By integrating secure identification with a transparent consent mechanism, Payment ID aims to balance innovation with responsible data use in Indonesia’s evolving digital economy.
