JakartaGlobe-Apr 24
Indonesia should not bow to US pressure over its national digital payment systems, an economist said Thursday, following American criticism of policies limiting foreign ownership and control in domestic payment networks. Piter Abdullah Redjalam, Executive Director of Segara Research Institute, said Indonesia’s Quick Response Code Indonesian Standard (QRIS) and National Payment Gateway (GPN) represent the country’s financial independence and digital sovereignty. The US critique, he said, is rooted not in interest to participate but in dissatisfaction over restrictions on foreign stakes in the country’s payment infrastructure. “The US criticism isn’t about joining QRIS. It’s about limits on foreign ownership and voting rights in national payment institutions, which undermines their longstanding dominance through Visa and Mastercard,” Piter said on the Investor Market Today program, streamed via Beritasatu’s YouTube channel on Thursday. In its 2024 National Trade Estimate Report on Foreign Trade Barriers, the US flagged Indonesia’s QRIS and GPN as potential trade barriers, sparking concern among officials in Jakarta. But Piter urged the government to stand its ground and not cede control of the domestic financial system amid rising trade tensions. QRIS and GPN, both initiatives from Bank Indonesia, have helped modernize and streamline the country’s digital payment landscape. But Washington’s concern, Piter said, reflects broader unease with Indonesia’s push to reduce foreign influence in its financial system.
The Central Bank had said it was open to working with any country, including the United States, on QRIS and other fast payment technologies. Negotiation with international partners remains important, he acknowledged, but core principles must not be up for compromise. “We can negotiate, but sovereignty and independence are non-negotiable,” he said. Read more at:
https://jakartaglobe.id/business/us-criticism-of-qris-baseless-says-indonesian-economist
