Indonesia Supports Micro-Business Financial Digitalization with QRIS Policy

In a move to boost economic and digital financial inclusion, Bank Indonesia has implemented a policy supporting the digitalization of micro-business payment systems through the QRIS (Quick Response Code Indonesian Standard). Transactions under Rp100,000 are exempt from QRIS tariffs, making digital transactions more accessible.

Merchants across the country are adopting the QRIS standard, replacing cash transactions with QR code payments. Users simply scan the QR code displayed at the merchant’s location using their digital wallets or banking apps. This method ensures speedy and secure transactions.

Bank Indonesia initially imposed a 0.3% tariff on each QRIS transaction, but later decided to exempt micro-businesses from tariffs for transactions under Rp100,000. This move aims to enhance the strategy of digitalizing payment systems and expanding economic and digital financial inclusion.

The growth of QRIS transactions has been remarkable, with a year-on-year increase of 104.64% in the second quarter of 2023, reaching Rp49.65 trillion in transaction volume. This method has been particularly popular among micro, small, and medium-sized enterprises (MSMEs), with 37 million users and 26.7 million registered merchants.

Bank Indonesia’s efforts to strengthen the QRIS system also involve partnerships and collaborations with various countries, in addition to the QRIS Cash Withdrawal feature. Initiatives such as the National QRIS Week and the Indonesian Sovereign Rupiah Festival further promote the adoption of QRIS.

The shift towards digital transactions in Indonesia is evident in the growth of digital banking transactions, which recorded Rp13.827 trillion, a 11.6% year-on-year increase.

The QRIS system’s universality, ease of use, and direct processing nature have played a significant role in its widespread adoption. This system enables different payment methods to be unified under a single QR code, simplifying transactions for both merchants and consumers.

As of September 1, 2023, the new policy will come into effect, with QRIS transactions under Rp100,000 being tariff-free, contributing to the growth and development of micro-businesses.