Remarks of President of the Republic of Indonesia on the Launching of Domestic Government Credit Card and International QRIS, at Thamrin Building, Bank Indonesia, Jakarta, August 29, 2022
Bismillahirrahmanirrahim.
Assalamu’alaikum warahmatullahi wabarakatuh,
Good morning,
May prosperity be upon us all.
Distinguished Ministers of the Indonesia Onward Cabinet;
Distinguished Governor of Bank Indonesia and members of Bank Indonesia Governor Council;
Distinguished Chairperson of the Board of Commissioners of the OJK (Financial Services Authority), the President Directors of banks in attendance;
Ladies and Gentlemen.
Digital economy today has truly evolved at an extraordinary pace. The technology came first, but the regulations were too slow to follow the pace, and this is happening in all countries.
Therefore, I appreciate the Domestic Government Credit Card (KKP) and also the QRIS (QR Code Indonesian Standard) launched by central bank Bank Indonesia. This shows that Indonesia is following the pace of digital technology transformation in the economic sector. This means that we are not left too far behind.
First, regarding Domestic KKP. I ask the Governor of Bank Indonesia and association of state-owned banks to accompany and oversee the ministries, institutions, provincial governments, regency governments and city governments to immediately adopt this new system so that there is speed in payment. Maybe in the past, the payment was delayed; now with this credit card, the payment should have entered our account immediately.
The Government has encouraged all government ranks to purchase and use domestic products so that all government spendings, including the SOEs and regional governments, are prioritized for the purchase of domestic products. I have mentioned previously that we should not purchase imported goods by using money from the Government (state budget and regional budget) which are sourced from both taxes and non-tax state revenues.
This is what I told the Head of LKPP (Government Goods and Services Procurement Policy Agency) many times, to immediately complete a system to cater this issue so that all regions can easily purchase domestic products through this system.
Some SOEs and regional governments has committed to purchase domestic products worth Rp800 trillion and the realization has reached Rp400 trillion, exceeding the target. If the realization can reach Rp800 trillion and all is spent at domestic products, particularly local products and MSME products, the economic movement at the lower level can be seen.
Second, regarding QRIS, I also order the Bank Indonesia to connect QRIS with other countries so that our MSMEs and our tourism sector can connect with other countries easier, both with Thailand and all ASEAN countries. I hope that this system can improve transaction efficiency. We are not just a market, a user, but an owner of a platform that later may attract more users.
That concludes my remarks. By saying bismillahirrahmanirrahim, this morning I officially launch the Domestic Government Credit Card and International QRIS.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.
(EST/MUR)