Bank Indonesia launches domestic credit card integrated with QRIS payment network
Bank Indonesia officially launched a domestic credit card for retail customers on Independence Day, marking a significant expansion of the payment system that has been operating for government transactions since April 2023.
The new credit card integrates with QRIS (Quick Response Code Indonesian Standard), the unified QR payment system launched by Bank Indonesia in January 2020 that now serves over 20 million merchant acceptance points across Indonesia. This integration allows customers to scan merchant QR codes and choose whether to pay using bank account balances, electronic money, or the new credit card option.
Deputy Governor Filianingsih Hendarta announced the retail launch following the central bank's monthly Board of Governors meeting on Wednesday, describing the credit card as providing
an alternative for deferred payment.
Major banks lead adoption
Seven banks are participating as first movers in the initiative: BCA, Bank Mandiri, BNI, BRI, CIMB Niaga, Permata Bank, and Bank Mega. These institutions collectively represent a substantial portion of Indonesia's banking sector assets. Bank Syariah Indonesia (BSI), the country's largest Islamic bank formed in 2021 from the merger of three state-owned Islamic banks, will focus on developing a sharia-compliant version of the card.
Filianingsih indicated that additional second movers have already applied to participate, and that all banks and payment service providers meeting regulatory requirements will eventually be able to issue the cards.
Part of broader financial sovereignty strategy
The domestic credit card represents the latest step in Indonesia's multi-year financial sovereignty initiatives. The country previously launched the Garuda Payment Network (GPN) in 2017, a national debit card scheme designed to reduce reliance on international card networks like Visa and Mastercard. Bank Indonesia first announced plans for a national credit card system in 2021 to complement the existing GPN infrastructure.
With credit card penetration remaining relatively low in Indonesia—approximately 17 million cards in circulation as of 2023 in a country exceeding 270 million people—the domestic system aims to expand financial inclusion while keeping transaction processing within the national economy. International card networks typically charge merchants interchange fees of 1.5-3% per transaction, while domestic payment systems can potentially offer lower rates, reducing costs for Indonesian businesses.
The timing aligns with strong growth in Indonesia's credit payment sector, where transaction values have grown approximately 15-20% annually in recent years, demonstrating increasing consumer demand for credit-based payment instruments.
The full implementation will enable seamless payment experiences across Indonesia's extensive QRIS merchant network, with customers able to select their preferred payment method at the point of transaction.
