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Indonesia Developing Indigenous Payment System to Replace Visa, Mastercard

The Bank of Indonesia is moving away from international payment platforms like Visa and Mastercard, focusing instead on developing its own indigenous payment system. This decision is driven by the country's desire to become less reliant on external financial platforms.

Visa and MasterCard
Visa and MasterCard 

President Widodo Advocates for Local Bank Cards

President Joko Widodo has urged local agencies to transition away from international payment processors and adopt cards authorized by local banks. This move is expected to bolster Indonesia's financial independence and increase the usage of domestically issued cards.

Reducing Dependency on External Financial Platforms

The initial report from Republic World highlights that Indonesia aims to reduce dependency on external financial platforms like Visa and Mastercard, taking cues from the impact of Russian sanctions imposed by the U.S. This step is considered a strategic move to protect the nation from geopolitical and international upheavals.

Widodo Cautions on Potential Problems with Visa, Mastercard

President Widodo has expressed concerns regarding the possible issues that may arise due to the U.S. sanctions on Russia, cautioning that Visa and Mastercard could be problematic. This further emphasizes the need for an indigenous payment platform in the country.

Progress on the Local Payment System Project

Erwin Haryono, a spokesman for the central bank, has reported that the progress on the local payment system project is at 90%. This indicates that developing the indigenous payment platform is well underway and could soon provide a viable alternative to Visa and Mastercard.