Bank Indonesia (BI) has launched the retail version of its domestic credit card, with eight banks initially issuing the product as the central bank looks to expand the use of locally processed payment infrastructure.
The Kartu Kredit Indonesia (KKI), or domestic credit card, was launched on Aug. 17 and can initially be used as a funding source for QRIS transactions. Users can pay by scanning a QRIS code or through QRIS Tap, allowing the credit facility to be used without relying on a conventional card payment network.
The initial issuers are Bank Central Asia (BCA), Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), CIMB Niaga, PermataBank, Bank Mega and Bank Syariah Indonesia (BSI), which is offering the product under a sharia-compliant financing structure.
KKI works through Indonesia’s domestic payment infrastructure. In the initial rollout, users can open their bank’s app, select the KKI facility and scan a merchant’s QRIS code. The purchase is charged to their credit facility and repaid according to the terms set by the issuing bank.
QRIS transactions are capped at 10 million rupiah ($560) per transaction. Banks can also set cumulative daily or monthly limits for individual QRIS users based on their risk-management policies.
KKI can also be used through QRIS Tap, allowing users to make payments by tapping their phone on compatible payment terminals, eliminating the need for a physical credit card to use KKI in its initial form. The central bank plans to expand the product to online payments, card-based transactions, and physical cards.
Domestic alternative to Visa, Mastercard
The domestic payment setup could put KKI in competition with international card networks such as Visa and Mastercard, particularly for domestic transactions. Unlike conventional credit cards that use international payment networks, KKI transactions are processed through Indonesia’s domestic payment infrastructure.
KKI transactions are processed through Indonesia’s domestic payment infrastructure.
Visa and Mastercard are likely to retain an advantage in overseas transactions and other payments where their global acceptance networks are important. But greater use of KKI for everyday domestic payments could reduce some transaction volume flowing through the two networks.
Santoso Liem, chairman of the Indonesian Payment Systems Association (ASPI), expects KKI to shift about 10% of the existing credit card transaction volume to the domestic scheme. He expects conventional cards to retain a role in higher-value purchases and overseas transactions, as quoted by local media.
The launch comes as QRIS continues to expand in Indonesia. As of June, QRIS had 65.77 million users and 44.86 million merchants, with 96.68% of those merchants classified as MSMEs. Transactions reached 12.55 billion in the first half of 2026, with their value rising 93.92% year-on-year to 1.12 quadrillion rupiah ($67.8 billion).
The combination gives banks a way to offer credit through a payment network already widely used by Indonesian consumers and merchants, while keeping the processing of those transactions within Indonesia.
QRIS fees
Alongside the KKI launch, the central bank is also expanding its 0% Merchant Discount Rate (MDR) policy for QRIS transactions.
From Oct. 1, QRIS transactions of up to 100,000 rupiah ($5.6) will carry a 0% MDR across small, medium and large merchants, compared with the previous 0.7% rate. The 0% MDR threshold for micro merchants will remain at 500,000 rupiah.
For micro merchants, transactions above 500,000 rupiah will continue to carry an MDR of 0.3%. Small, medium, and large merchants will pay 0.7% for transactions above 100,000 rupiah.
For Bank Indonesia, the two measures are part of a broader push to deepen Indonesia’s domestic payment infrastructure. The KKI gives banks a locally processed credit-payment option, while the changes in QRIS lower the cost of accepting small-value digital payments across a wider group of merchants.
