Indonesia’s President Joko Widodo has requested the country’s authorities to distance themselves from Western payment systems such as Visa and Mastercard and start using credit and debit cards issued by Indonesian banks.
According to Widodo, Indonesia needs to shield itself from geopolitical disruptions. This includes potential financial sanctions from the US, EU, and their allies.
“Be very careful. Visa and Mastercard could be a problem,” Widodo warned Indonesian officials.
According to reports, the Bank of Indonesia noted the president’s warning and is preparing to phase out Visa and Mastercard. The bank has announced, that they are establishing their own payment system.
Indonesian central bank’s spokesperson said that the new system is at about 90%, adding that domestic cards will have many advantages, including lower fees.