This is a follow up on Presidential Instruction No. 2 of 2022, which is to use non-cash transactions on government spending at the central and regional levels to (support the movement of) admirable domestic products
Jakarta (ANTARA) – Bank Indonesia (BI) launched the Domestic Government Credit Card (KKP Domestik), which will initially be carried out through the interconnection of the Quick Response Code Indonesian Standard (QRIS).
BI Governor Perry Warjiyo stated that the Domestic Government Credit Card will facilitate the purchase of goods and services of the central and regional governments, with a government credit card payment scheme in which the process is conducted domestically.
“This is a follow up on Presidential Instruction No. 2 of 2022, which is to use non-cash transactions on government spending at the central and regional levels to (support the movement of) admirable domestic products,” he said here on Monday.
Presidential Instruction No. 2 of 2022 stipulates accelerating the use of domestic products and products of micro and small businesses and cooperatives to ensure the success of the Proud of Indonesian Products National Movement (GERNAS) in the government’s procurement of goods and services.
Related news: BI developing Digital ID for platform data storage
The launch of the Domestic KKP was conducted under Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan with the Financial Services Authority (OJK) and the Association of State-Owned Banks (Himbara), especially Bank Mandiri, BNI, and BRI.
Warjiyo explained that the initial stage of implementing Domestic KKP is conducted through QRIS, considering that the interconnection of QRIS has been supported by 85 QRIS providers and 20.3 million merchants.
Related news: BI choosing banks, payment actors for disbursing digital rupiah
Meanwhile, Minister Pandjaitan said the launch of the Domestic KKP was a step forward for Indonesia to improve its government spending system.
“The Domestic KKP is part of the affirmative action on government spending, in the spirit of the Proud of Indonesian Products National Movement that was launched by President Joko Widodo on March 25, 2022, in Bali,” Pandjaitan explained.
He affirmed that the domestic KKP is expected to increase the level of transparency in the government’s spending on goods and services.
Related news: BI to oversee implementation of domestic gov’t credit card: Jokowi
Related news: Some 77 banks have officially become participants in BI-Fast: BI