JakartaPost-Mar 21, 2023

Bank Indonesia (BI) says it will introduce a domestic credit card system allowing for greater independence and lower fees, as transactions are settled locally rather than by foreign providers. BI spokesperson Erwin Haryono said on Saturday that the central bank had been in discussion with local industries and progress stood at 90 percent, but he declined to reveal when the domestic credit card would be launched or what it would be called. Erwin said a domestic credit card would have several benefits, notably lower fees, because offshore settlement and relying on foreign payment networks like United States-based Visa or Mastercard would no longer be necessary.  The announcement comes shortly after President Joko “Jokowi” Widodo called for the use of homegrown credit cards to increase the country’s independence in financial transactions. The President deems such independence essential to shield transactions from geopolitical fallout. The US has long used economic tools, including disconnection from Western payment systems, to put pressure on countries perceived to be acting against its national interests. Read more at:

https://www.thejakartapost.com/paper/2023/03/21/bi-pushes-ahead-with-domestic-credit-card-to-cut-reliance-on-foreign-ones.html.