Jakarta. Bank Indonesia (BI) has rejected claims that its planned Payment ID system will allow the central bank to pry into individuals’ private financial transactions.

Dicky Kartikoyono, BI’s head of payment system policy, said in Jakarta on Tuesday that the Payment ID  is fully compliant with the country’s Personal Data Protection Law and will not be used to monitor purchases at an individual level, but rather to identify broader economic trends across sectors.

“The idea that BI wants to spy on the private lives of people is simply impossible,” Dicky said. “We won’t be tracking who buys shoes or coffee. What we want to see is how the footwear industry is growing, or the trends in hotels, restaurants, and cafes. We will never look at individual data.”

Payment ID is a unique nine-character identifier generated from the national identification number (NIK) data. It is designed to consolidate a person’s financial information --from bank accounts to e-wallets-- to support economic analysis, credit distribution, and targeted government programs.

According to BI, the system could improve access to financing for micro, small, and medium enterprises (MSMEs), many of which are unbanked due to limited credit histories. However, any access to individual data by financial institutions would still require explicit customer consent.

“You cannot just open someone’s data without permission from the owner,” Dicky said. “That’s the backbone of trust in the banking business. Now, with the Personal Data Protection Law, privacy is fully protected and can only be used with the data owner’s approval, and that’s what we protect.”

The Payment ID system remains in the trial phase and will not be rolled out on Aug. 17, contrary to recent speculation. BI said its first real-world use could be in a government non-cash social assistance program in Banyuwangi, East Java, planned for September 2025, though final implementation details will depend on the government’s regulations.

“We’re waiting to see exactly how we can assist, based on the data available in the financial system,” Dicky said.

BI’s research suggests the Payment ID will complement, not replace, the Financial Information Service System (SLIK) operated by the Financial Services Authority (OJK). The central bank has invited stakeholders to review the design and identify potential vulnerabilities before a wider launch.

“We are committed to ensuring the confidentiality of personal data when the Payment ID is implemented,” Dicky said. “It will strengthen financial sector analysis, but it will never compromise privacy.”

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