Defending Qris: Indonesia’s Response To Us Trade Pressure – Oped

Indonesia's concerted effort to develop a comprehensive national digital payment infrastructure, led by the Quick Response Code Standard Indonesian (QRIS) and the complementary Gerbang Pembayaran Nasional (GPN), serves as a prime example of technology-driven financial inclusion.

Domestic adoption has surged, with QRIS transactions increasing by 45 percent year-on-year between January 2024 and March 2025, surpassing 2.3 billion transactions in the first quarter of 2025. Concurrently, the percentage of unbanked adults in the population decreased from 24.5 percent in January 2023 to 17.2 percent by March 2025. This essay argues that, despite the United States viewing QRIS and GPN as potential trade barriers, Indonesia can effectively defend itself through a framework that prioritizes transparency, strategic regulatory adjustments, dynamic standard diplomacy, and compliance-focused partnerships. This approach will help Indonesia diversify and safeguard its economy and sovereignty while fostering cooperative international relations.

By March 2025, over 98 million micro, small, and medium enterprises (MSMEs) across thirty-one provinces had adopted QRIS as their primary digital payment channel. According to data from Bank Indonesia, these MSMEs saw an average reduction of 18 percent in transaction costs, thanks to streamlined processes and standardized QR code formats. Remarkably, rural districts, where traditional banking infrastructure is limited, represented 68 percent of new QRIS registrations by merchants. These metrics demonstrate the central bank's strategic vision to integrate over fifty wallet providers and thirty domestic banks under a unified standard. This initiative will also promote ancillary services, such as inventory management tools and microcredit facilities.

U.S. authorities have identified three main issues with Indonesia's payment ecosystem. First, payment service providers must obtain GPN certification to operate, a process criticized for its lack of transparent criteria and predictable timelines. Second, stakeholder consultations during the development of QRIS were minimal, leading American fintech firms to claim insufficient engagement and regulatory unpredictability. Third, foreign equity in GPN consortia is limited to 49 percent, a restriction that U.S. trade officials argue creates a competitive imbalance. A report by the U.S. Department of Commerce in January 2025 describes these issues as non-tariff barriers that may violate World Trade Organization obligations.

Indonesian policymakers advocate for QRIS and GPN as essential tools for achieving digital sovereignty, ensuring consumer protection, promoting inclusiveness, and fostering growth. By standardizing the QR code format across over fifty e-wallet providers and thirty banks, fragmentation and fraud risk are minimized. According to Bank Indonesia statistics, transaction disputes related to QRIS have decreased by 22 percent since its launch in November 2019. Additionally, data localization requirements that ensure sensitive consumer information is domestically stored, mitigating exposure to cross-border threats, preserving control over national data financial governance.

To address American concerns and preempt potential actions, Indonesia must improve transparency and foster inclusive dialogue. The central bank and financial services authority should establish quarterly forums that include U.S. fintech representatives, global standard-setting bodies, consumer advocacy groups, and academic experts. Additionally, publishing comprehensive regulatory impact assessments, cost-benefit analyses, and draft proposals in both Bahasa and English on accessible government portals would clarify the rationale behind policymaking. Interactive webinars online and platforms for further comment would facilitate real-time engagement and demonstrate Indonesia’s commitment to collaborative rule-making.

Calibrated regulatory adjustments can align national objectives with foreign investors' interests. By gradually increasing the permissible foreign equity share in consortia from 49 percent to 60 percent over twenty-four months, contingent upon compliance with audit cybersecurity standards and strict data localization, a clear signal would be sent. Streamlining interoperability certification by establishing clear technical standards and reducing associated fees facilitates entry for multinational payments, while ensuring that providers maintain system integrity.

Diplomacy, which operates dynamically at bilateral, multilateral, and regional levels, is essential. Jakarta could propose the establishment of a U.S.-Singapore-Indonesia Digital Dialogue on Finance, co-hosted by the finance ministries and central banks of each country. This dialogue would focus on developing shared frameworks for cross-border payments, consumer protection, and cybersecurity. Within ASEAN, Indonesia should present QRIS and GPN as models for regional interoperability during meetings of finance ministers and central bank governors. The G20’s Financial Action Inclusion Plan will enhance Indonesia’s leadership in promoting digitally inclusive finance and encourage constructive international collaboration.

Diversifying trade reduces Indonesia's vulnerability to potential U.S. influence. Strengthening relationships with ASEAN neighbors, as well as with China and Japan, is essential. Additionally, expanding collaborations with South Korea and Taiwan, and leveraging their advanced fintech ecosystems, is crucial. Forming digital payment partnerships with Latin American markets, such as Chile, Colombia, and Mexico, will also create new opportunities for Indonesian solutions. Active participation in forums such as the Global Payments Innovation Coalition would strengthen diverse partnerships and protect against unilateral trade pressures.

Strict adherence to international technical standards is essential for the credibility of QRIS GPN. Compliance with EMVCo QR code specifications and certification in ISO 20022 messaging formats, along with active participation in the International Organization for Standardization's financial services committees, ensures robust third-party validation. Regular publication of audit results from accredited laboratories and transparent reporting of certification milestones would enhance trust among foreign stakeholders, highlighting Indonesia’s commitment to technical excellence and regulatory predictability.

Despite these proactive strategies, significant challenges remain. A decentralized system of governance can lead to inconsistencies in how provinces implement policies, delaying the nationwide harmonization of standards. Cybersecurity threats are continually evolving; a major breach could undermine consumer confidence and attract external scrutiny. Moreover, ongoing digital literacy gaps in rural and marginalized communities may hinder effective adoption among certain demographics. This includes meeting demands, addressing vulnerabilities, investing in capacity-building for local regulators, implementing comprehensive cybersecurity training programs, and launching large-scale digital literacy campaigns.

To conclude, Indonesia is at a crucial point where digital innovation and international trade diplomacy intersect. By enhancing transparency, refining regulatory frameworks, actively engaging with global partners, diversifying trade networks, and consistently adhering to stringent international standards, Indonesia can effectively safeguard QRIS GPN from potential U.S. tariffs. This comprehensive strategy will not only protect the nation's economic sovereignty but also showcase Indonesia's leadership in the collaborative global digital finance ecosystem.

The opinions expressed in this article are the author's own.

References

1. Jakarta Globe. (2025, April 21). US Slams Indonesia’s QRIS Policy as Trade Barrier, BI Open to Cooperation. https://jakartaglobe.id/business/us-slams-indonesias-qris-policy-as-trade-barrier-bi-open-to-cooperationArchyde+10Jakarta Globe+10Asia-Pacific Solidarity+10

2. CNN Indonesia. (2025, April 22). QRIS dan GPN Kena Senggol AS, Apa Alasannya? https://www.cnnindonesia.com/ekonomi/20250422052418-78-1221063/qris-dan-gpn-kena-senggol-as-apa-alasannya/CNN Indonesia

3. Antara News. (2025, April 22). BI Ready for US QRIS Cooperation Despite Trade Concerns. https://en.antaranews.com/news/352437/bi-ready-for-us-qris-cooperation-despite-trade-concerns