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OVO and LinkAja Prepare to Adopt Toll Road Payments Using Sensors

OVO and LinkAja Prepare to Adopt Toll Road Payments Using Sensors

The Toll Road Regulatory Agency (BPJT) targets a multi-lane free-flow (MLFF) contactless system for toll road payments to be implemented this year. Financial technology (fintech) payment companies OVO, LinkAja, and DANA are also preparing to implement this sensor-based payment system.

MLFF uses sensor technology to detect vehicle license plates. The technology will be connected to the user’s banking account or digital wallet account. That way, drivers don’t have to stop when passing through toll gates.

OVO and LinkAja Prepare to Adopt Toll Road Payments Using Sensors

The government actually targeted the MLFF implementation in 2018, but it has been delayed this year. The plan is for this payment system to be implemented based on area scope, not by toll road segment. Currently, the government is reviewing implementation schemes such as using the fintech payment platforms OVO, GoPay, LinkAja to DANA.

“We strongly support this plan in order to provide a more advanced and comprehensive payment service in Indonesia,” said OVO Head of Corporate Communication Harumi Supit, Monday (4/1).

The application of this technology is also an opportunity for payment fintech to collaborate with the government. “This is in line with our target to become a national strategic asset, assisting and encouraging all government initiatives, especially in terms of financial services and payments,” he said.

LinkAja Still Awaiting Policy from Jasa Marga

Meanwhile, LinkAja Marketing Director Edward Kilian Suwignyo is still waiting for a policy from Jasa Marga as the toll road operator in determining the MLFF implementation scheme. Jasa Marga is also a shareholder of LinkAja.

Even so, LinkAja has prepared various technologies if it is involved later. “We together with Jasa Marga have tested contactless payments on a limited scale,” said Edward, Monday (4/1).

Jasa Marga has indeed developed contactless payment technology Single-Lane Free Flow (SLFF) with radio identification technology (RFID). The state-owned company appointed its subsidiary PT Jasa Marga Tollroad Operator (JMTO) to collaborate with LinkAja in testing SLFF.

OVO and LinkAja Prepare to Adopt Toll Road Payments Using Sensors

The trial was carried out at the Bali-Mandara toll road, then expanded to Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek). In the early stages, this involved Garuda Indonesia operational vehicles and DAMRI public transport buses.

Meanwhile, DANA CEO Vincent Iswara said contactless technology on toll roads can stimulate the acceleration of digital payment adoption in Indonesia. “Given that toll payments are one of the routine activities that are close to people’s daily lives,” he said, two months ago (11/30/2020).

DANA assesses that the application of this technology is an opportunity for fintech startups to hook the government. “We always welcome every opportunity that comes from various economic chains to increase digital transactions,” said Vincent.

GoPay Has Not Provided Feedback Regarding MLFF

Meanwhile, GoPay has yet to respond to the MLFF implementation plan this year. However, the Gojek subsidiary has been studying RFID since 2019. In 2019, GoPay Managing Director Budi Gandasoebrate said that the company did not rule out adopting other solutions such as RFID.

OVO and LinkAja Prepare to Adopt Toll Road Payments Using Sensors

However, according to him, the Quick Response (QR) code is still the best solution for the payment system in Indonesia. Bank Indonesia and the Ministry of Public Works and Public Housing Fund (PUPR) have developed non-cash payments on all toll roads since 2017. This has been carried out in stages on several toll roads and is supported by the electronic toll collection consortium or ETC.

The first stage is the 100% electronification of toll roads with the ease of filling in electronic money balances. Second, integrating the toll road system, so that users can simply stick an electronic card at the entrance and exit gates.

In the third stage, forming an ETC consortium consisting of banks, Toll Road Business Entities (BUJT), and switching companies. With ETC, the 0.3% commission previously paid by banks to toll operators has been changed to a merchant discount rate (MDR). The final step is the implementation of the MLFF.