Open banking is a strategic solution to drive digital transformation even more focused. With open banking, banks are able to capitalize on digital innovation opportunities that can provide consumer-centric services as good as fintech business models.

This open banking policy is in line with developments in other countries. Thus, it will cover the best practice aspects to encourage a healthy digital ecosystem.

Open Banking Position in Payment System Blueprint 2025

Bank Indonesia (BI) seeks to navigate the national payment system in the digital era through the Payment System Blueprint 2025 (BSPI 2025). BI's ultimate goal is to bring 91.3 million unbanked population and 62.9 million MSMEs into the formal economy and finance in a sustainable manner through the use of digitalization.

BSPI 2025 has five visions, one of which is to support banking digitalization. To be precise, banks play their role as the main institution in the digital financial economy through open banking and the use of data and digital technology in the financial business. In practice, open banking is one of five initiatives to realize the 2025 BSPI.

Five initiatives in the Payment System Blueprint 2025

The open banking initiative aims to drive digital transformation in banking. It ensures banks as the main institutions in the digital financial economy. For that reason, Open API standardization is implemented which includes data, technical, and security standards. As a result, this step allows the disclosure of financial information and interlinks between banks and fintech.

As a decisive measure, BI created the Open API Framework. It is used to assist Indonesia's open banking development in a structured and systematic manner. Thus, interlinks between banks and fintech will be safe and guaranteed.

What is an Open API Framework?

Open API Framework is a set of policies related to open banking in Indonesia. It aims to support the digital financial economy fairly through interlinks between banks and fintech. Therefore, it can improve the payment system efficiency and encourage financial inclusion throughout the country.

The framework is built upon five key elements, which are:

1. Main Objectives 

The Open API standard has four main objectives: increasing efficiency in transactions and payment systems, driving innovation and competition, increasing financial inclusion, and reducing shadow banking risks.

2. Guiding Principles

To carry out each part of the framework, there are several principles that must be adhered to which have been summarized in the guiding principles. They are:

  • Openness;
  • Interoperability;
  • Independence;
  • Flexibility;
  • Governance;
  • Customer protection and consent;
  • Novelty

3. Standards

The standards in the Open API framework include five main points, namely:

  • Data standards; covering the scope and types of data that need to be disclosed by banks and fintechs;
  • Technical standards; including reference to the Open API specification which covers communication protocols, architecture types, data formats, and data structures.
  • Security standards; including minimum security requirements for banks and fintech, such as authentication, authorization and encryption.
  • Governance standards; including consumer consent, dispute resolution, API life cycle, and governing body standards.
  • Contractual standards for open API cooperation between banks and third-party service providers, including fintech, are outlined in the form of guiding principles.

4. Implementation

Open API framework implementation consists of three elements: business models (transfer & payment), participants, and implementation timeframe.

5. Regulatory Approach

Open API Framework proposes two regulatory approaches, namely:

  • Principle-based approach, formulated by BI, Financial Services Authority (Otoritas Jasa Keuangan, OJK), and industries.
  • Activity-based approach, formulated by fintech companies, banks, non-bank financial industries, and payment aggregators.

6. Stages and Timeline

To realize the Open API policy, there are five stages that will be taken, which are:

  • Consultative paper coordination between BI and OJK
  • Benchmarking visit
  • Establishment of National Working Group
  • Finalization
  • Implementation

From this framework, National Payment Open API Standard (Standar Nasional Open API Pembayaran, SNAP) was set up. The preparation of the SNAP is carried out by BI and Indonesian Payment System Association (ASPI) by establishing a National Working Group. Before it was formed, BI issued a Consultative Paper on Open API Payment Standards in the first quarter of 2020.

SNAP as Indonesian Open API National Standard

Standar Nasional Open API Indonesia (SNAP)

Along with the 76th Independence Day of the Republic of Indonesia on August 17, 2021, BI officially released Payments Open API National Standard (Standar Nasional Open API Pembayaran, SNAP), a series of standards that regulate payment service providers for open APIs. It will drive a healthy, competitive, and innovative payment industry ecosystem so that the public can get efficient, safe, and reliable payment services.

SNAP regulates everything from technical standards, data, to transaction security. All of them are expected to provide protection for consumers. As part of BRI, BRIAPI became one of the pioneers in implementing SNAP as part of realizing the BSPI 2025 vision.

This standardization puts BRIAPI on par with the world's massive Open Banking services, paving the way for a shift towards an Open Data Economy—a new, huge potential market. Characterized by the use of digital platforms and ecosystem, Open Data Economy offers various products and services that are personalized to every consumer.

BRI Open Banking Initiative through BRIAPI

BRIAPI has simplified and improved the integration process of BRI's banking products and services with its partners' businesses and digital platforms. BRIAPI products enable third parties such as e-commerce, fintech, and digital startups to collaborate and integrate with BRI's banking products.

Beyond the standards set by Bank Indonesia, BRIAPI has also been certified to the ISO 27001 international standard since 2019. BRIAPI has also brought BRI to become the first bank in Southeast Asia to receive the Payment Application Data Security Standard (PA-DSS) international security certification. The data security standard on payment applications is given to BRI Direct Debit.

Generally, BRIAPI products are divided into two main categories: transactional and informational. BRIAPI's transactional products are the perfect addition to businesses' payment systems. They consist of:

  1. BRI Direct Debit
  3. BRI Virtual Account (BRIVA)
  4. Transfer to BRI Account
  5. Transfer to Other Banks
  6. Cardless Cash Withdrawal

Meanwhile, BRIAPI informational products allow business owners to show their account information without leaving the dashboard. There are two products in this category, namely Account Statement and Account Information.

Thus, as a leading strategic solution to drive digital transformation, BRIAPI supports partners to benefit greatly from digital opportunities. Integrate BRIAPI and gain advantages from BRI services starting today.