Academia
Cashless economy: State-owned bank BNI employees print credit cards on Aug. 10, 2012, at the lender’s Card Business Division in Jakarta. Bank Indonesia (BI) has cut the interest rate for credit cards from a maximum of 2 percent to 1.75 percent per month, effective on Thursday. (JP/Nurhayati)
Bank Indonesia (BI) and the Indonesian Payment System Association (ASPI) launched Kartu Kredit Indonesia (KKI) on Aug. 17, enabling deferred QRIS payments to be processed domestically. While easier access to credit could support consumption and strengthen Indonesia’s payment ecosystem, it also carries risks. Without prudent lending standards, greater convenience could lead to higher household debt and deteriorating credit quality.KKI builds on Indonesia’s existing QRIS payment infrastructure by allowing consumers to use the familiar QR-code payment mechanism for credit transactions. KKI transactions will be facilitated through the National Payment Gateway (GPN), enabling a larger share of retail payments to be processed domestically. This represents another step in BI’s gradual effort to strengthen domestic payment infrastructure, which began with the establishment of GPN in 2017 and continued with the launch of QRIS in 2019 to standardize QR-code payments.
