ShopeePay's Next Step After Obtaining E-Money License of Bank Indonesia

Bank Indonesia has recently released a new e-money license for PT Airpay International Indonesia, a unit that runs ShopeePay products for Shopee Indonesia e-commerce platform. It allows ShopeePay to legally works per November 28th, 2018. The service is currently available for Shopee's users in Indonesia.

Handika Jahja, Shopee Indonesia's Director said, ShopeePay is only available in Indonesia. After getting the regulator's "blessing", they committed to take the digital wallet product to other countries in the future.

The business model is similar to most e-commerce with digital wallet. Since November 2018 ShopeePay has been working optimally, including to make digital payment, from top-up balance, game vouchers, BPJS, installment, and many more.

He also talked about the company which separated from Shopee unit. They have different position, but still under the same parent company, Sea Group Ltd. In fact, Shopee Indonesia is under PT Shopee International Indonesia.

It's quite common to find such practice, one basic factor is to comply with BI regulation for e-money license management. One of it is enclosed in article 10 of Bank Indonesia Regulation (PBI) 20/2018, a company wants to register must have at least 51% shares owned by Indonesian citizens and/or Indonesian legal entities.

In addition, it is said in article 7, for non-bank operators, the major directors must be domiciled in Indonesia.

Shopee Indonesia, although having a digital wallet, still has no plan to maximize the Online-to-Offline (O2O) business potential. The company is still into the SME development to go online.

– Original article is in Indonesian, translated by Kristin Siagian