ID Badges or Driver’s Licenses in E-Payment

Akmal Zaidaan / 2401989436

As the times progress, society is required to do everything quickly and briefly. Why? Because Indonesia and various other ASEAN member countries have signed an agreement called the ASEAN Economic Community or also called the AA. This is necessary so that ASEAN countries can compete better and so as not to lose to non-ASEAN member countries such as India and China. This makes all bureaucracy between members of the MEA easier including competition in employment and increased productivity by reducing bureaucracy and improving multilateral agreements between ASEAN members and increasing the use of technology. This causes the use of technology is needed for various things to achieve efficiency so that data collection, payment, and other processes are carried out quickly and synergistically. Without taking a long time. This has led to various changes in the daily life of Indonesian society. Indonesians are starting to become literate with digital banking services, non-cash payments by utilizing the internet network and other electronic technologies such as Near Field Communication (NFC) and Radio-frequency identification.

Both of these technologies have been widely used for payment methods. Like E-Money, Brizzi, Flazz, Tapcash, and others. We can observe, with the presence of this technology, a noticeable difference occurs in the payment of toll road costs / Tax on Location no longer takes a long time which causes long queues just to find change for each car. Just tap e-money, with a time of 1-2 seconds, the balance will be reduced, and the owner of the vehicle can continue the journey. Innovations carried out by PT Jasa Marga with partner banking become the inspiration of various parties unqualified by the Ministry of Home Affairs (Kemendagri) and the Police of the Republic of Indonesia (Kapolri). In 2009, the Ministry of Home Affairs began to launch electronic ID cards for the first time and was tested to pilot areas. Such as Denpasar, Yogyakarta, Padang, and Makassar. Electronic ID cards use RFID technology to store population data electronically. It is expected that with this technology, citizens do not need to do an extension of id card and no longer need to fill out an identity form because it is done electronically in accordance with the identity record. But electronic ID cards are not integrated with E-Money technology because at that time e-money was not widely used unlike now. There will be changes to electronic ID cards but stopped due to corruption cases and other political matters that cause the renewal of the Electronic ID card system is not done. Ten years later, the Police Chief began to launch an Electronic SIM or also called Smart SIM. Smart SIM uses the same technology as electronic ID cards that use RFID. But the difference, pinned also E-Money technology into SMART SIM (Smart Driver’s License) is due to following the government program to improve financial inclusiveness and there is a strong correlation between toll road users and driver’s license owners because toll road users must have a driver’s license. Integrating a SIM with E-Money is the right step. That is in addition to the function of smart sim itself in the form of a recording tool for the identity of road users, the media recording of criminal acts or violations on the highway such as crossing, identity if there is an accident in traffic, can also be used also for E-Money as a payment media. In addition, the public does not need to visit a bank or minimarket just to buy an E-Money card without a balance. In addition to being cost-effective, reducing the community mask will carry a card that is increasing in number because it has been integrated with the sim. On the other hand, the advantages of SMART SIM itself can be activated in state-owned banks owned or used by the community. So that the public does not need to look back the desired E-Money to the minimarket in accordance with the issuing bank. In the future, the Government of Indonesia should model it on the state of Pakistan which has collaborated its electronic ID card / Electronic ID between the National Database & Registration Authority of Pakistan or NADRA of Pakistan with Mastercard’s payment gateway that allows the use of payment tools through the same network that is Mastercard and can make transactions abroad by following the availability of Mastercard network around the world.

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Son, R. E., & Rika Valentina, T. (2011). Implementation of Electronic ID Card Program (e-KTP) in Pilot Area. In MIMBAR: Vol. XXVII (Issue 2). www.padang.go.id

Mastercard helps expand financial inclusion in Pakistan by optimizing National ID cards with e-payment functionality | Middle East/Africa Hub. (n.d.). Retrieved March 17, 2021, from https://newsroom.mastercard.com/mea/press-releases/mastercard-helps-expand-financialinclusion-in-pakistan-by-optimizing-national-id-cards-with-e-payment-functionality/