Indonesia is a major economy, ranked seventh in the world with $4.37 trillion GDP based on purchasing power parity. Indonesia’s domestic interbank system, GPN, currently supports only local debit cards and requires some adjustments to properly serve credit cards and international transactions, Indonesian Credit Card Association (AKKI) executive director Steve Marta told CNBC Indonesia on Saturday. However, in order to compete with Visa and Mastercard, any domestic alternative must be accepted internationally, experts cited by the Post said, expressing doubt that local providers are ready for costly investments in infrastructure upgrades. “If we use our own platforms, and everybody is using them, from ministries and local administrations to municipal governments, then we can be more secure,” Widodo said, according to the Jakarta Post. The president urged the public sector to adopt this and other domestic systems, stressing that eventually “everyone should be able to use” locally-issued bank cards so that “we can be independent.”

Last year, Indonesia rolled out a Domestic Government Credit Card (KKP) program to facilitate transactions between the central and regional governments. Visa and Mastercard could be a problem,” Widodo said on Wednesday at a gathering that promoted the use of Indonesian-made products and services. We must remember the sanctions imposed by the US on Russia. The leader of Indonesia says the country must reduce its dependence on foreign payment systems to negate potentially disastrous economic consequences should the country ever find itself in the crosshairs of Western sanctions.Īddressing a business forum in Jakarta this week, President Joko Widodo argued that Indonesia must shield itself from geopolitical disruptions, citing the sanctions attack on Russia’s financial sector by the US, EU, and their allies over the conflict in Ukraine. The sweeping sanctions on Russia show that Visa and Mastercard could become a problem, President Joko Widodo warns.

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