Indonesia: Announced Central Bank of Indonesia regulation to limit foreign investors controls on Payment System Operators (PJP) and Payment System Infrastructure Operators (PIP)

On 30 December 2021, the Central Bank of Indonesia (BI) announced a regulation to limit foreign investors' controls on Payment System Operators (PJP) and Payment System Infrastructure Operators (PIP). Under the new regulation, BI classified the rights of foreign investments to the Payment System Infrastructure Operators (PIP) into economic interest rights and voting rights, establishing new norms concerning FDI entry and ownership. Under this regulation, foreign investors can only have a maximum of 20% of both economic interest rights and voting rights. The economic interest right is the right to receive the dividend from their investment, whereas the voting right is the right to appoint members of management in the PIP and holds a veto right in the PIP's general meeting of the shareholders. The regulation will be implemented on 1 July 2021.