Indonesia Local Payment SDK Summary and Interfacing Guide

introductory

With the rapid growth of the digital economy in Southeast Asia, Indonesia, one of the largest markets in the region, continues to see a growing demand for electronic payments. For enterprises wishing to enter the Indonesian market, access to local payment methods is crucial. In this article, we will introduce in detail the mainstream local payment SDKs in Indonesia and their docking process to help developers complete the integration efficiently and optimise the user experience.

Why do I need access to Indonesia Local Payments?

1. user behaviour: Most Indonesian consumers prefer local e-wallets and bank transfers to international credit cards.
2. Policy compliance: Some transactions need to be done through local channels to meet regulatory requirements.
3. Conversion rate increase: Providing familiar payment methods can significantly reduce abandonment rates.

Mainstream Indonesia Local Payment SDK Summary

1. DANA

• brief: An e-wallet invested by Ant Group, covering retail, bill payment and other scenarios.
• Applicable Scenarios: E-commerce, game recharges, bill payments.
• tariff: Approximately 1%-2%.
• API Documentation Address::DANA Developer Centre(registration required)

2. OVO

• brief: A Grab eco-supported head wallet that supports QR codes and online payments.
• specificities::
  • Support for instalment payments (PayLater)
  • High offline merchant coverage
• Docking method:
  • Provides REST API and SDK for Mobile
  • Test sandbox environment refinement

3. LinkAja

• State-owned backgroundIt is an aggregation platform that integrates the balances of multiple banks and telecommunication operators.
  |Features|Description|
  |—|—|
  |Settlement Cycle |T+3 Business Days|
  |Lowest Handling Fee|0.5%|

Note: BPJ tax files need to be submitted to sign up for the production environment.

4. Bank Transfer (virtual account)
Including Mandiri VA, BCA VA, etc...

//sample pseudo-code: generate BCA virtual account

PaymentRequest request = new PaymentRequest()

 .setAmount(50000)

 .setCustomerId("USER123"); .

Response resp = BcaSdk.createVirtualAccount(request);

Common docking steps

1.Qualification Preparation
   

Indonesia Local Payment SDK Docking Steps in Detail

1. Preparation of qualifications

Before accessing any Indonesian local payment SDK, businesses need to ensure that the following basic materials are available:

• Company Registration Documents(e.g. business licence, tax registration certificate)
• Bank account information(usually requires a local Indonesian bank account)
• API Request Form(Required to be completed and submitted by some payers)
• BPJS Ketenagakerjaan (social security number, mandatory on some platforms such as LinkAja)

⚠️ Note: Different payment methods may have additional requirements for qualification, e.g. OVO may require proof of Grab co-operation.

2. Selection of a suitable integration model

Choose the appropriate docking method based on business needs:

3. SDK download and environment configuration

Take DANA for example:

1. interviewsdeveloper portalRegister for an account.
2. Download the Android/iOS SDK or get the REST API documentation.
3. Configure the sandbox environment to test the key:

   # Android sample gradle dependencies
   
   implementation 'id.dana:sdk:3.12.0'
   
   

4.Core Functionality Docking

(1) Initialise SDK

// OVO SDK initialisation example

OvoPayment.init(

    context = applicationContext,

    merchantId = "YOUR_MID",

    apiKey = "TEST_123456"

)

(2) Initiate a payment request

Typical parameters include:

• orderId (Merchant Order Number)
• amount (Amount to be converted to IDR)
• customerPhone (User's mobile phone number for OVO/DANA push)

(3) Handling callback notifications

The server-side logic that must be implemented:

# Flask Example Verifying DANA Callback Signatures

@app.route('/dana/callback', methods=['POST'])

def handle_callback().

    signature = request.headers.get('X-DANA-SIGNATURE')

    if verify_signature(request.data, signature).

        update_order_status(request.json['orderId'])

        return "OK",200 

5.Testing and Go-Live Key Points

(1) Sandbox testing process
Test environments are available from all major providers.
||DANA Sandbox|OVO Staging|
|—|—|—|
Virtual Account|88810000001~100(Fixed)|Dynamic Generation|

⚠️ Common Error Code Handling.

40030: Insufficient balance (DANA)

RP03: User cancellation (OVO PayLater)

(2) Production environment switching conditions

Complete the following steps to go live.
✅ Passed at least 20 successful test transactions
✅ Signing of a formal cooperation agreement
✅ Completion of security audits (some bank VAs require HTTPS + IP whitelisting)

6.Optimisation Recommendations and Compliance Matters

performance optimisation
✔️ Enable local cache to store commonly used Token
✔️ asynchronous processing of reconciliation documents

Legal risk avoidance
❗ Prohibit access to illegal industries such as gambling (platforms such as PHYTON are regularly scanned)
❗ Store transaction records for at least 10 years (in line with BI Regulation No22/2019)

For a full reference of the code base, visit GitHub and search for "indonesia-payment-samples". It is recommended to keep an eye on the platforms' changelogs - for example, in Q2 2024 GoPay will migrate to the new encryption standard AES-GCM.