Bank Indonesia Launches Government Credit Card for Central and Regional Agencies

Jakarta –

Government Credit Card (KKP) has been launched by Bank Indonesia (BI). This special domestic credit card can be used by government agencies, both central and regional, to purchase goods and services.

This Government Credit Card (KKP) product issued by BI will be supported by the National Payment Gateway (GPN) payment system.

“We will launch a domestic credit card for the government. This is a synergy between the government, BI, and the industry that central and regional government financial transactions are now using domestic credit cards,” said BI Governor Perry in FEKDI 2023, Monday (8/5/2023 ).

President Joko Widodo (Jokowi) immediately gave a special order to all government agencies to immediately use Government Credit Cards to buy local goods and services.

“I ask all ministries and institutions, as well as local governments to immediately use Government Credit Cards and support the expansion of QRIS between countries,” Jokowi said in his remarks at the 2023 FEKDI event, Monday (8/5/2023).

Jokowi explained that the Government Credit Card really needed to be used to facilitate goods shopping for the central and regional governments.

He considered that the Government Credit Card could lead to efficiency and accountability in the use of the budget in central and regional government agencies.

“Digital financial innovations such as government credit cards need to be strengthened to facilitate spending on goods by the central and regional governments. This is to increase efficiency and transparency and make it easier to be accountable for the use of government spending,” said Jokowi.

No Visa-Mastercard

Unlike credit cards in general that use Visa or Mastercard, KKP will be directly supported by the GPN system made by BI.

Previously, BI Deputy Governor Doni Primanto Joewono revealed that this decision was taken in line with President Joko Widodo’s directives that he wanted the KKP to use the GPN.

“According to the president’s directives, for domestic KKP we don’t use Mastercard and Visa, so we use GPN,” Doni said in a press conference, Thursday (16/3/2023).

Back to Perry, he said the transaction fee with a government credit card was only 0%. Merchant fees are also said to be cheaper.

“With 0% fees for the government, and more efficient merchant fees. At the same time, this is also part of the Proud Made in Indonesia movement,” said Perry.

Furthermore, Perry stated that the Ministry of Home Affairs (Kemendagri) had issued instructions and implementation alias operational guidelines for the use of APBN or APBD with Government Credit Cards.

“This is facilitating financial transactions between the central and regional governments. The Minister of Home Affairs already has guidelines on how to use the state budget using the KKP, how the regional budget uses this credit card,” said Perry.

(p/das)