Bank Indonesia, Transport Ministry Team Up to Provide Cashless Commutes

Bank Indonesia, the country's central bank, signed an agreement with the Ministry of Transportation on Wednesday (06/09) that will make daily commutes easier, safer and more efficient by allowing public transportation to accept non-cash payments.(Photo courtesy of Bank Indonesia)

By : Tabita Diela | on 12:05 PM September 07, 2017
Category : Business, Banking/Finance

Jakarta. Bank Indonesia, the country's central bank, signed an agreement with the Ministry of Transportation on Wednesday (06/09) that will make daily commutes easier, safer and more efficient by allowing public transportation to accept non-cash payments.

The cashless payment system will first be introduced in the Jakarta, Bogor, Depok, Tangerang and Bekasi area (Jabodetabek), allowing local commuters to pay their daily fees using e-money. Nation-wide cashless payment systems for public transport and public parking are expected to be fully operational by the end of 2018.

"Regarding various modes of transportation, operators and payment systems, Bank Indonesia sees the need of an entity called Electronic Fare Collection," Bank Indonesia governor Agus Martowardojo said in a prepared speech.

Agus said the government will form two new entities, called Electronic Fare Collection (EFC) 1 and EFC 2. The first will oversee matters related to public transport operated by state-owned enterprises, such as KAI Commuter Jabodetabek, PPD, Damri and the upcoming Soekarno-Hatta airport train, while EFC 2 will oversee transport systems under regionally-owned enterprises, such as Transjakarta and the upcoming MRT and LRT projects in the capital.

Both EFC 1 and 2, which will be formed at the end of this year and which will be fully integrated into one another in 2018, are tasked to provide and run a public transport dashboard, collecting data on people's commuting behavior that could be used as intelligence to form a sound transport policy.

Both entities will work with operators and provide amenities such as vending machines, top-up stations and membership and loyalty programs.

For commuters and the public in general, Agus said, this collaboration envisions a practical future in which anyone can pay their public transport, parking and toll road fees with any digital payment they possess.

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