Page 139 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

Challenges with enrollment or use of the Minority/Religious groups: Until May 2015, Indonesians were required to either
program by other populations: list one of the country’s six official religions (Buddhist, Catholic, Protestant, Confu-
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cian, Hindu, and Muslim) on ID cards or to leave religion blank. Minority religious
denominations could not be listed. Many chose to leave religion blank, but reports
emerged of individual registration officials blocking or choosing to lump these indi-
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viduals into one of the six recognized religious groups. In practice, this led people
from minority religious groups to choose not to get national ID cards. The 2015
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policy change now allows any religion to be written onto the identity card.
Cost/Person: US $3.73 21
Challenges with Implementation or Program: • Data management: A temporary halt to the project occurred in late 2014/early
2015 over concerns about data security. Reports of fake circulating ID cards indi-
cated a possible security breach. 22
• Enrollment: In 2012, equipment failures delayed enrollment. The problem was
compounded by the lack of personnel on hand to fix the equipment and a gener-
ally inefficient response that resulted in some 5 million enrollment records stuck
en route to transfer to a central database. 23,24
Process for responding to implementation Not specified
challenges:

FUNCTIONAL USES OF PROGRAM

Financial Services (including Social Transfers)
• Debtor Information: in 2015, Bank Indonesia and MOHA partnered to link identification information contained in the central
database with the bank’s debtor information system. The partnership is expected to enable the bank to “review their prospec-
tive and existing customer with less cost and time because of the more valid database” (para 3). 25
• Social Transfers: as of 2013, the government was distributing a separate card (Social Protection Card) for social programs. 15.5
million households with this card use it to access some of the country’s largest transfer programs: rice subsidy, unconditional
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cash transfers, and cash transfer for poor students. No evidence is found of social transfer links with the e-KTP.
Election
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• Voting: the e-KTP is used as an ID to verify identity before casting a vote.
• Monitoring (planned): in Indonesia, the government is currently working to build e-voting infrastructure for the 2019 elections.
Voters will walk into a voting booth where the e-KTP identity card and the information on it will be verified on site. The chair-
man of the Indonesian Agency for the Assessment and Application of Technology claims that it will enable election results to be
tallied quickly, and facilitate election audits. 28
Surveillance and Security
• Law enforcement: security measures embedded in the ID card and biometric information associated with individuals are pur-
ported to make IDs less susceptible to forgery. Government officials cite that mitigating the use of fake IDs will aid in tracking
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and capturing criminals.
Other Functions
• Civil Service administration functions: the card is used as citizen identification when applying for passports, driving licenses,
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taxpayer identification numbers, insurance policies, and certificates of land.
• Electronic signature: the card contains a bearer’s electronic signature. 31

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1 Priyanto, 2012, AntaraNews, 2014b, Ibid, King, Rawlson, 2012, Sumner, 2015, Kurnaiati, 2013, Amianti, G2015, Kurna-
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iati, 2013, Ibid, Priyanto, 2012, Ibid, Ibid, Ibid, Messmer, 2012, AntaraNews, 2014b, Fahmi, 2012, Aritonang,
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2015, US Department of State, n.d., Wardah, 2014, Aritonang, 2015, AntaraNews, 2014b, Ibid, Kurnaiati, 2013,
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Priyanto, 2012, Amianti, 2015, Banerjee, et.al., (2013), Ibid, AntaraNews, 2014a, King, 2012, Kurnaiati, 2013, Pri-
yanto, 2012.
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