BI pushes ahead with domestic credit card to cut reliance on foreign one [Indonesia Central Bank moving away from Visa, Mastercard]

The Jakarta Post ^ | March 20, 2023 | Vincent Fabian Thomas

[Ultra Sonic 007]

Bank Indonesia (BI) says it will introduce a domestic credit card system allowing for greater independence and lower fees, as transactions are settled locally rather than by foreign providers.

BI spokesperson Erwin Haryono said on Saturday that the central bank had been in discussion with local industries and progress stood at 90 percent, but he declined to reveal when the domestic credit card would be launched or what it would be called.

Erwin said a domestic credit card would have several benefits, notably lower fees, because offshore settlement and relying on foreign payment networks like United States-based Visa or Mastercard would no longer be necessary.

[Ultra Sonic 007]

This is in light of comments by Indonesia's president (reported elsewhere) that the goal of credit independence for Indonesia has taken on greater importance in light of American sanctions on Russia.

"Be very careful. We must remember the sanctions imposed by the US on Russia. Visa and Mastercard could be a problem," [President Joko Widodo] warned.

Given that Indonesia is the fourth-most populous country on Earth with over 270 million people, this isn't small potatoes.

[Tell It Right]

Indonesia had trouble convincing Visa and Mastercard to report transactions in values of liters of camel urine.

[TexasGator]

Wrong country

[Tell It Right]

IIRC Indonesia is a majority Muslim nation. And Muhammad himself put into the Koran the supposed healing qualities of camel urine.

[Ultra Sonic 007]

Camels aren't native to Indonesia:

[dfwgator]

Rats leaving the sinking ship.

[dfwgator]

With Iran and Saudi Arabia getting together, the writing is on the wall.

We in deep doo doo.

[PapaBear3625]

In the past, credit card companies had their own networks for communicating with stores’ credit card systems. That is no longer strictly needed.

https://www.creditkarma.com/credit-cards/i/credit-card-networks

There is room for credit card readers which connect directly to issuing banks, bypassing the Visa/Mastercard networks and their fees

[Tell It Right]

See my comment #4 in reply to comment #3 (similar to yours). I should have put in my comment #2 that my joke isn’t regional but religious.

[lodi90]

Yep. Double the population of Russia. Soon, probably, triple.

[Katya]

smart, no one wants to be beholden to the American bank associations