Types of Disbursement Through API in Indonesia For Companies

Published on
September 21, 2022
Written by
Ekky Pramana

A progressive digital ecosystem has given birth to the Payment System Services Infrastructure, one of which focuses on providing convenience in the transaction process. This innovation answers the community's need for a payment system that is fast, easy, cheap, and secure in conducting business activities.

The real time technology that is commonly used is the API Disbursement, this technology is connected to financial institutions and integrated with various payment instruments and access, making the exchange process simpler, more automated and optimized.

Maybe some of you are not fully familiar with the API disbursement, therefore we will provide a discussion about this particular technology further.  

What is API Disbursement?

According to the Cambridge Dictionary, disbursement is defined as "an amount of money given for a particular purpose".

Bank Indonesia Regulation Number 23/6/PBI/2021 concerning Payment Service Providers also mentions disbursement as forwarding funds. So in financial terms, disbursement is generally understood as a payment transfer.

Meanwhile, API is an acronym for Application Programming Interface or application programming interface. Where this system works by integrating various services to answer the needs whenever there is a confirmed inquiry. .

So when combined, the API disbursement is a system that simplifies the payment process easily and quickly.

Types of Disbursement Components

1. Cash Disbursement

Cash Disbursement if translated implies the meaning of Cash Payments, or simply payments that are made at the time when the transaction happens. 

2. Cash Disbursement Journal

Cash Disbursement Journal is a medium for recording cash payment flows issued by the company. The media can be in the form of notebooks, service provider applications, or through financial software. 

3. Cash Receipt Journal

The Cash Receipt Journal is inversely related to the Cash Disbursement Journal. If the Cash Disbursement Journal records cash disbursements, the Cash Receipt Journal records business cash entry transactions (inflow) into the journal media.

Types of Disbursement Through APIs in Indonesia

Real Time Online

Real Time Online, as it’s called, provides transaction speed with "Real Time" settlement time regardless of working hours, transactions can be received right away by the recipient. Due to its real-time nature, Bank Indonesia has imposed a limit up to 25 to 50 mil IDR for this transaction type.

National Clearing System

SKN or commonly known as Lalu Lintas Giro (LLG) where transactions rely on the same bank intra-network following the schedule of Bank Indonesia, 08.00 – 15.00 on weekdays. If the transaction is carried out by different institutions, it will take longer time, and if the transaction takes place outside business hours it will be processed on the next working day.

Real Time Gross Settlement

According to BI, Real Time Gross Settlement is an infrastructure used as a means of electronic fund transfer, where settlement is carried out instantly per individual transaction. One of the prominent features of RTGS is “Liquidity Saving Management” (NGO) which aims to improve risk management and efficiency in liquidity management.

Cash Disbursement

This type of API disbursement facilitates merchants to make automatic withdrawals of funds for urgent needs in the form of cash, by utilizing a network of participating outlets. This retail outlet network is usually in the form of government services retail outlets, such as post offices and pawnshops, or minimarket outlets networks spread throughout Indonesia.


E-wallet which stands for electronic wallet is an electronic wallet that is widely used by the public for various transactions such as payments to merchants, online shopping, bill payments and many more. API disbursement can also be used to transfer to e-wallets. 

Host to Host

Host to Host (H2H) payment system is a digital payment transformation that is directly connected between servers and connected to your business partners. Host to Host Payment works automatically in various company activities to make payments without intermediaries or being burdened by time-consuming documents. An example of this transfer system is applied to intra-bank, or intra-institutional transfers. A third party can request connection to this host to host network with approval from the related network owner. 


BI-FAST is a national retail Payment System infrastructure developed by Bank Indonesia, where this system can facilitate retail payments in real-time, safe, efficient, inexpensive and available nature at any time. The amount of the transaction fee from the Bank to the Customer is set at a maximum of IDR 2,500 per transaction, cheaper than the general transfer which is set at IDR 6,500 per transaction. BI-FAST payments can currently be used through tellers, mobile or internet banking, and in the future will also apply to transactions using QR, ATM, and EDC. Currently, BI-Fast has been adopted by a network of 50+ major banks in Indonesia, such as BCA, BRI, Mandiri, Permata, and many others.


Remittance is the forwarding of funds carried out within and outside the country. According to the OJK, remittance is a secure money transfer service that is carried out from within the country to recipients abroad (Outward Remittance) or vice versa from abroad to within the country (Inward Remittance), where the distribution can be in the form of transfers to bank accounts or taken in cash by the recipient. 

Implementation and Use of the API Disbursement

API disbursement has been widely adapted to facilitate money distribution flow, products and service trade, finance reporting and bookkeeping, as well as other financial activities.  

Currently, many modern enterprise financial management systems have connected their ERP (enterprise resource planning) systems or financial software applications with the API disbursement to offer the convenience of managing finances through a single platform. The implementation and use of this technology can be used in:

Employee Salary Payment

This routine company activity has its own complexity, it is impossible to input hundreds or even thousands of employee account numbers one by one to send their monthly and weekly wage payments. So that a system is needed to facilitate this continuity.

Refund or withdrawal system

The Disbursement API with a real time mechanism provides convenience in processing transactions quickly, so the benefit is that refunds that must be transferred can be done and received right away.

Vendor payments and supplier invoices

The activity of buying and selling products and services cannot be separated from the need for vendors to support the smooth running of your business. If the vendor's bank account and yours are different, it won’t be a problem with the API Disbursement system integrated in the device, even for transactions in bulk. 

Charging e-Wallet

Electronic wallet applications that can be accessed via smartphones take advantage of the convenience offered by this system, the value being practiced is fast, easy and practical transactions.  API disbursement is commonly used to transfer to e-wallets for top up purposes. 

API Disbursement also provides value in the form of guaranteeing consumer protection, expanding access, and implementing sound and reliable business practices while still paying attention to the safety of the digital economic and financial environment.

As discussed earlier, many enterprise management systems are connected to API disbursement service to provide a more comprehensive financial management experience.

The average company has several accounts in different banks for different purposes. These accounts are monitored and must be adjusted to the company's budget needs in real time. In response to this, Aspire offers an all-in-one financial platform that can connect your cash flow with the company's budget in real time. Sending and receiving payments are connected via API to facilitate transfers and updates in real time.

For companies that have already had their own ERP system, Aspire, in collaboration with Duitku, also provides a separate payment gateway service that can be connected directly either through API or through plugins to receive and send funds in Indonesia.

By using the Aspire all-in-one Finance, the flow of company expenses or income will be automatically recorded in detail in real time, and is directly connected to the company's budget and bookkeeping. Expense management and Receivables management can be done through 1 platform without having to switch softwares. Simplify your operational financial management with Aspire and streamline your finance operation.

Keep aspiring with Aspire

Ekky Pramana is a seasoned writer specialising in business finance and management. With a writing history at Tech in Asia, Teknoverso, and various other publishers, he leverages his market expertise to empower and educate first-time founders in managing their businesses better.
Ekky Pramana
Read less
Aspire is the all-in-one finance operating system for businesses. Our mission is to empower the next generation of entrepreneurs with the financial tools they need to realise their company’s full potential.
Learn more about us.
Ready to get started?
Aspire makes business finance easier - expense management, invoicing, FX, employee claims and more. This is the all-in-one finance OS for your business
Try it out today >>
Get high quality finance and entrepreneurial resources in your inbox.
Subscribe to the newsletter >>

Get high quality finance and business content in your inbox

Get insights and resources on building & managing your finance team, your finance tech stack and growing your business
Cheers! We'll share our best articles with you shortly. See you around!
Seems like something went wrong. Could you try again?

Some articles you may like

No items found.

Explore the all-in-one finance solution built for finance teams

Save time and money with borderless payments, corporate cards, expense management, and more