The Jakarta Post
The capital city is one step ahead of other provinces in the country, marking itself as the pioneer in the implementation of cashless technology.
The head of Bank Indonesia's Jakarta branch, Donni P. Joewono, said that Jakarta had set a good example in cashless technology through its social assistance program and public transportation payment system.
“The Jakarta administration has fully implemented the non-cash technology. Furthermore, the Home Affairs Ministry will enforce the use of cashless technology in all provincial administrations across Indonesia starting on Jan. 1, 2018,” Donni said at the Bank Indonesia annual gathering in Jakarta on Tuesday.
He said that, by year-end, the target was to reach 40 to 50 percent in cashless transactions, including those made through the transportation payment system and the Jakarta Smart Card (KJP), which went cashless in 2015. Jakarta has also enforced non-cash payments at all toll gates.
According to Bank Indonesia, the implementation of cashless technology in payment systems contributes to economic efficiency and transparency and increases Jakarta's domestic revenue.
“For example, the parking area in Sabang [in Central Jakarta] can now earn Rp 10 million [US$740] to Rp 15 million a day through non-cash payments. It increased significantly from only Rp 300,000 to Rp 500,000 a day in the past when there were cash payments,” Donni said. (roi)