August 8, 2025 | 02:59 pm
TEMPO.CO, Jakarta - The Center of Economic and Law Studies (Celios) believes Bank Indonesia's current project, Payment ID, could reinforce national tax data. Payment ID will integrate an individual's financial activities by recording and merging data from various sources, such as bank accounts, credit cards, e-wallets, and online loans, derived from the citizen's identification number, or NIK.
According to the Director of Digital Economy at Celios, Nailul Huda, the main strength of Payment ID lies in understanding an individual's fund flow and the purpose of the transactions. In the context of financial crimes such as corruption or money laundering, tax data will be stronger when integrated with Payment ID. "Tax evaders cannot escape accountability for their transactions," Nailul told Tempo on Thursday, August 7, 2025.
Regarding data security, Nailul believes that Bank Indonesia complies with the Personal Data Protection Law (PDP Law); thus, the citizens' financial data will only be used by the banking sector with Bank Indonesia's approval.
However, Nailul mentioned that Bank Indonesia and related ministries must first bolster policy infrastructure. For example, the Ministry of Communication and Digital should promptly issue derivative regulations from the PDP Law to allow people to report criminal offenses when their data is misused.
Additionally, the Directorate General of Taxation at the Ministry of Finance must improve their data center, including the CORETAX system. "Financial reform must also be accompanied by tax reforms," he said.
Executive Director of BI's Communication Department, Ramdan Denny Prakoso, says the development process of Payment ID systems and data infrastructure will take several years to complete.
"For this reason, BI will conduct a trial process on a specific use case only, which is to assist in the accuracy of non-cash social aid distribution, starting on August 17 to support the Social Protection Program (Perlinsos)," Denny told Tempo on Monday, July 28, 2025.
Denny explained that Payment ID is intended to ensure the security of public transactions, and the data can only be used by authorized parties working with the central bank according to their respective mandates. The development and usage of Payment ID data also adhere to individual data confidentiality laid out under the PDP Law.
Editor’s Choice: Bank Indonesia Says Payment ID to Enter Trial Run for Social Aid Distribution on August 17
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