Transacting in Singapore will be easier due to the immediate legalization of the Rupiah currency as a means of payment there. Bank Indonesia (BI) is targeting full implementation of the Quick Response Code Indonesian Standard (QRIS) with Singapore next year.
Currently, Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) have just started the initiation of cooperation.
Assistant Governor, Head of the Payment System Policy Department (DKSP) BI, Filianingsih Hendarta revealed that full implementation will be carried out in semesters II-2023.
“Singapore will soon enter development and piloting,” he explained Tuesday (30/8/2022).
Meanwhile, the implementation of inter-country QRIS is expected to facilitate users in making retail payments instantly, safely, and efficiently.
For Singapore, BI revealed that people only need to scan the NETS QR code displayed by merchants.
Thus, people do not need to exchange money for Singapore currency. The source of funds debited through Singapore’s QR NETS scan is funded from rupiah accounts.
Filianingsih emphasized that this inter-country QRIS payment connectivity will empower individuals and businesses, especially micro, small and medium enterprises (MSMEs) to conduct cross-border trade, e-commerce, and other financial transactions efficiently.
In addition, this will also encourage the growth of the tourism sector, along with the return of active international travel flows.
As is known, the flow of visits between the two countries was recorded at 1.9 million visitors from Singapore to Indonesia and 3.1 million visitors from Indonesia to Singapore.
Previously reported, 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.
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.