Electronic Transactions Limited to Rp5 Million

Bank Indonesia will limit electronic transactions to Rp5 million and a maximum of Rp20 million per day in order to prevent money laundering.

The Financial Transaction Reports and Analysis Center (PPATK) will also request that each transaction be registered to tighten supervision.

Ronald Waas, Bank Indonesia Accounting and Payment System director, said that the limitation is specified in the revised Bank Indonesia Regulation No. 11/11/2009 on Card Payments (APMK).

Waas added that e-money is intended for micro businesses such as retail, public transportation and minimarkets. Such transactions are convenient because they do not need large amounts of money and reduces the need for small change.

The central bank recorded 10 million e-money transactions per day valued at Rp1.9 billion as of April 2011, totalling to Rp235 billion.

Waas further said that in early 2007, when the license for the use of e-money was first issued, there were 400,000 transactions. The number increased to three million in 2009, and, 10 million by 2011 with an average 95,000 transactions per day.

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