The government through Bank Indonesia (BI) officially launched the Domestic Government Credit Card (KKP) and the Interstate Quick Response Code Indonesian Standard (QRIS), Monday (29/08), at the Thamrin Building, Bank Indonesia (BI), Jakarta. The inauguration was led directly by President Joko Widodo. Then, what exactly is a Domestic Government Credit Card?
The President appreciated the launch of Domestic KKP and Interstate QRIS which he considered a form of digital economic development in the country.
“I appreciate the Domestic Government Credit Card and also the QRIS launched by Bank Indonesia, proof that our country Indonesia is following the speed of change in digital technology in the economy,” said the President.
The President asked Bank Indonesia (BI) to oversee and assist government agencies to enter the Domestic Government Credit Card system. The existence of this system is expected to accelerate the payment of government spending.
“I ask the Governor of BI, Bank Indonesia, then banking, especially Himbara to really accompany, oversee, both ministries, institutions, provincial governments, district governments, city governments, to immediately enter this system, to this platform, so that there is speed payment,” he said.
Governor of Bank Indonesia Perry Warjiyo stated that the Domestic KKP will facilitate the purchase of goods and services from the government, both central and regional, using a government credit card payment scheme, which will be processed domestically.
“This follows up on Presidential Instruction No. 2 of 2022, which uses non-cash transactions for government spending at the center and regions to love domestic products,” he said in Jakarta, Monday.
Presidential Instruction Number 2 of 2022 itself is about the Acceleration of Increasing the Use of Domestic Products and Products of Micro, Small businesses, and Cooperatives in the Framework of the Success of the Proud National Movement Made in Indonesia in the Implementation of Government Procurement of Goods/Services.
The launch of the Domestic KKP was carried out under the coordination of the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan with the Financial Services Authority (OJK) and the Association of State-Owned Banks (Himbara), particularly Bank Mandiri, BNI and BRI.
Perry explained that the initial stage of implementing Domestic KKP through QRIS was carried out considering that QRIS interconnection had been supported by 85 QRIS providers and 20.3 million merchants.
In addition, QRIS has also been developed to support the Proudly Made in Indonesia National Movement and the Proud Indonesian Tourism National Movement, especially for MSME players to be able to transact digitally.
“So this can really be done immediately,” said Perry.
Meanwhile, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the launch of the Domestic KKP is a step forward for the Indonesian people to improve government spending system services.
“Domestic KKP is part of the affirmative action on government spending. In the spirit of the Proudly Made in Indonesia National Movement launched by President Joko Widodo on March 25, 2022, in Bali,” he explained.
Luhut also encouraged the central and regional governments to immediately implement the Domestic KKP to increase transparency and provide convenience in government goods and services spending transactions.
In addition, the Domestic KKP is also expected to help accelerate payments to MSMEs.
“For this reason, all ministries/agencies (K/L) and SOEs are expected to use the Domestic KKP in their respective agencies,” he said.