Indonesian President Joko “Jokowi” Widodo has called for the country to scrap foreign payment networks, such as Visa and MasterCard, and instead using credit cards issued by domestic banks.

Indonesia, which is the world’s seventh largest economy in terms of GDP (PPP), launched a Domestic Government Credit Card payment system in March 2022.

Speaking at a local business forum in Jakarta on Wednesday, Widodo stressed that everyone [in Indonesia] should be able to use the domestically made credit cards so that we can be independent.

The goal is to protect any transactions from possible geopolitical fallout that could disrupt the national economy. Be very careful. We must remember the sanctions imposed by the USA on Russia. Visa and Mastercard could be a problem, the Indonesian president warned.

In March 2022, US-based Visa and MasterCard payment systems announced they were suspending operations in Russia to comply with US sanctions slapped on Moscow in response to its special military operation in Ukraine.

Sberbank, one of Russia’s biggest banks, responded by issuing a statement that the Visa and Mastercard ban would not affect the operation of payment system cards issued by it within the country.

Payments abroad and in foreign online stores with Russian Visa and MasterCard cards would end. Widodo, for his part, made it clear at the time that his country is not going to sanction Russia.

The president’s Wednesday remarks come after he launched the Domestic Government Credit Card and the International Quick Response Code Indonesian Standard payment systems.

During a speech at Bank Indonesia in March 2022, Widodo underscored that the launch of the above-mentioned payment systems shows that Indonesia is following the pace of digital technology transformation in the economic sector.

Indonesia remains the seventh-largest economy in the world and the biggest in Southeast Asia in terms of gross domestic product based on purchasing power parity (GDP PPP).

Statistics Indonesia data that was released last month indicated that the country’s economy expanded 5.31% in 2022, showing its best annual growth rate since 2013.

Sputnik / ABC Flash-Point News 2023.

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Elza Tate
Elza Tate
17-03-23 22:11

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18-03-23 05:46

It is no coincidence that Indonesia holds the worlds biggest Muslim population ,the President is no fool he knows the USA backs Zionist Israel to the hilt and that country is out to diminish or destroy the Muslim population.

This is a very wise move and hurts the USA just as much as that country is hurting the economy of the EU to its own betterment by forcing it to its knees under moral enslavement to its wishes .

El Zotz
El Zotz
Reply to  Donnchadh
18-03-23 11:49

After the USA sanctioned Russia, MC and VISA were still allowed to be used within the country, but Indonesia’s measures now block this opportunity in order to safeguard and protect the local economy against double standards?.

Reply to  El Zotz
18-03-23 15:43

It shows the USA that Indonesia is not prepared to be browbeaten and seeing Russia set up its own system which works and cant be controlled by the USA economically to obey the USA .

As Indonesia has a thriving business economy in this area of the world and is not prepared to condemn Russia it is preparing itself for any future sanctions from the USA.

Reply to  baronmaya
19-03-23 12:21

If the Dutch obey the USA and refuse to transact business via Indonesia,s new banking transfer system then that is their loss .

As regards corporate profits on the Rain Forest question and Orangutan habitat survival I agree with your sympathies having signed petitions regarding both on the two biggest online petition organisations but that decision is up to Indonesia’s government to debate .

Its better to proceed a bit at a time some that the countries economy is not dealt a severe blow in a short period.

Reply to  baronmaya
19-03-23 12:09

Its a case of looking long term ,while there could be an initial loss the President looks at Russia who has not only weathered the most intense sanctions in world history but the Russian economy is in plus figures by doing the same a while back.