Indonesian Credit Card Issuers in Retail Segment Continue to Grow

Deputy Governor of Bank Indonesia (BI) Filianingsih Hendarta revealed that a number of Payment Service Providers (PJP) in the second mover category have begun registering as issuers of the retail segment of the Indonesian Credit Card (KKI). This move is expected to increase the supply of KKI services to the public, both from the banking and non-banking sectors.

“Currently, second movers have started to register and hopefully this will soon add many PJPs that become issuers. This is from the supply side,” said Filianingsih at a press conference following the BI Board of Governors Meeting (RDG) in Jakarta on Wednesday (19/8).

To date, eight first-mover banks have officially become KKI issuers. These eight banks are BCA, Bank Mandiri, BNI, BRI, CIMB Niaga, Bank Permata, Bank Mega, and BSI, which is currently developing a Sharia-based KKI.

Filianingsih explained that the implementation of the retail segment KKI is being carried out in stages to ensure system readiness and transaction security. BI emphasised that this scheme is inclusive in nature. All banks and non-bank institutions that meet the requirements may apply to become KKI issuers, depending on the readiness of each institution’s infrastructure.

The retail segment KKI is an extension of the government segment KKI, which has previously been successfully used for central and regional government transactions. The presence of the retail KKI aims to provide an alternative deferred payment instrument for the wider public.

“So the public has increasingly diverse payment instrument alternatives, whether deferred or immediate, cash or directly deducted from their balance,” added Filianingsih.

In addition to inclusivity, the KKI is designed with the principle of interoperability. This allows a single Electronic Data Capture (EDC) machine to accept various types of KKI credit cards from different issuers. This concept is similar to QRIS, where a single QR code can be scanned by various payment applications.

For information, the retail segment KKI was officially launched by BI together with the Indonesian Payment System Association (ASPI) on Monday (17/8), coinciding with the 81st Anniversary of the Independence of the Republic of Indonesia. This development also received full support from the Indonesian Credit Card Association (AKKI) and Payment System Infrastructure Providers (PIP).