Bank Indonesia said it will not use the upcoming transaction tracking system, Payment ID, to monitor individual financial transactions, addressing concerns from the public about privacy.

Payment ID is a new data platform designed to integrate and identify financial transactions across payments, savings, credit cards, and digital wallets, and will link to Indonesia’s national ID system.

The central bank said Payment ID will only be used to analyze sectoral economic trends and improve programs such as the distribution of non-cash social assistance.

Officials said personal transaction data will not be accessed without the owner’s consent, and all data sharing will require user approval.

Bank Indonesia said the system aims to comply with Indonesia’s data protection laws and will not share consumer data without permission.

A pilot for Payment ID is set to begin in Banyuwangi, East Java, in September, focusing on non-cash social aid.

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🔗 Source: CNN Indonesia

🧠 Food for thought

1️⃣ Consumer privacy concerns reflect global digital payment adoption patterns

Bank Indonesia’s need to address public surveillance fears mirrors broader consumer behavior trends observed across digital economies.

Research shows consumers are increasingly sensitive to how their financial data is collected and used, with transparency and explicit consent becoming critical factors in adoption decisions1.

This pattern extends beyond Indonesia. Studies indicate that businesses worldwide must now communicate their data management practices clearly to build consumer trust, as people have grown more skeptical about how companies handle personal information2.

The timing of BI’s pilot program in Banyuwangi reflects a strategic approach to address these concerns proactively, as research suggests that transparent data practices and strong security measures are essential for fostering consumer acceptance of new financial technologies1.

The emphasis on compliance with Indonesia’s Personal Data Protection Law demonstrates recognition that regulatory adherence alone isn’t sufficient. Public communication about privacy safeguards has become equally important for successful digital payment system launches2.

Recent Bank Indonesia developments

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