Bank Indonesia expands use of its govt credit card system to retail usage

JAKARTA, Aug 18 — Indonesia's central bank, Bank Indonesia (BI), has expanded the use of its government credit card system to retail usage. The 'Indonesia Credit Card' now allows individuals and businesses to use it, leveraging the domestic payment system. Initially launched in 2022 for government entities to speed up spending, the card is now issued by eight local banks: Bank Central Asia, Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, CIMB Niaga, Permata Bank, Bank Mega, and Bank Syariah Indonesia. It can be used at merchants accepting QR code payments, including internationally. In the April-June quarter, government transactions on these cards totalled 147.8 billion rupiah, a 70% increase from the same period last year. The card will coexist with international credit cards, allowing users to choose their preferred card. Previously, BI’s acting Governor Destry Damayanti mentioned that Visa and Mastercard dominate Indonesia’s credit card sector.