Bank Indonesia's Policy Analysis in Facing the Challenges of Digital Payment System Regulation in the Era of Financial Transformation

Abstract

Digital transformation in Indonesia’s financial sector has shifted payment systems from cash-based to more efficient digital transactions, requiring adaptive policies from Bank Indonesia as the payment system authority. This study analyzes Bank Indonesia’s policies in addressing regulatory challenges in the digital payment ecosystem. Using a qualitative narrative literature review based on secondary data from academic journals and official policy documents, the findings show that Bank Indonesia has adopted an adaptive and risk-based approach through the Indonesia Payment System Blueprint 2030 and initiatives such as QRIS, BI-FAST, the National Payment Gateway, and the National Open API Payment Standard, which enhance interoperability, efficiency, and security. Nevertheless, cybersecurity risks, digital literacy gaps, and supervisory complexity remain significant challenges. The study concludes that the current policy direction is appropriate but requires continuous evaluation, stronger risk management, and improved digital literacy to ensure sustainable digital payment system stability.