The Roles of Indonesian Credit Cards in the National Economy

The Indonesian government has applied several strategies to promote the national economy to further improve its competitiveness in the international arena. For example, during the FEKDI 2023 event at the Jakarta Convention Center on May 7-10, 2023. Bank Indonesia launched Indonesian Credit Cards (KKI/Kartu Kredit Indonesia) which will help improve the efficiency of the state spending process to boost Indonesia’s economy. What roles do these credit cards play in the economy? Check out the full article below.|

Reducing Idle Cash

One of the financial issues both the central and local governments have mostly been dealing with while spending development funds is idle cash. Idle cash is, in short, money that is not used nor invested to earn interest. In the case of the state budget, idle cash often takes the form of accumulated money supply (UP/uang persediaan). This is because UP cannot be used by just anyone or at any time due to its highly specific purpose and inability to be used for all types of transactions.

On the other hand, idle cash indicates the existence of funds that could have been used for development purposes but were overlooked. Therefore, the utilization of Indonesian Credit Cards is expected to suppress the cost of using UP and idle cash in cashless transactions. Consequently, the development process can continue efficiently according to the agenda.

Minimizing the Risks of Financial Fraud

Fraud may occur anywhere through any payment method, both cash and cashless. Regardless of the methods, this criminal act could harm the state since it deducts the funds that could have been allocated to ensure infrastructure improvement or distribution.

Therefore, Indonesian Credit Cards exist to minimize the possibility of unreasonable transactions, for example, fictitious payments or recurring transactions. However, how does KKI solve these issues? It must be noted that KKI has been equipped with the latest encryption technology according to the highest security standards, such as 3D Secure, to suppress fraud risk.

Endorsing Accountability

In utilizing state funds, transparency is a vital element to ensure development progress and foster people’s trust. To reduce the risks of state funds being spent for inappropriate purposes and transactions being incorrectly recorded, KKI presents a reporting scheme that endorses accountability. How does it work?

After using credit cards, payment receipts will be forwarded to the Commitment Making Officer (PPK) for verification purposes. PPK will be the one who issues Warrant Pay (SPBy/Surat Perintah Bayar) which will be sent to the treasurer to be further checked or declined if there are indications of misuse. Hence, it is certain that KKI utilization aligns with its purpose, which is to support development.

Promoting MSME Development

Micro, Small, and Medium Enterprises play key roles in promoting the national economy. This is owing to MSME contributions not only helping to reduce the poverty rate among common people but also contributing a relatively large amount to the state’s foreign exchange earnings. For instance, during the peak of the Covid-19 pandemic in 2020 until 2021, MSMEs contributed up to 61.07% to the state’s GDP. Therefore, Indonesia was able to recover and be what it is today.

To maintain this achievement, KKI exists to support the number of transactions made with MSMEs. Due to its restricted use only for goods and services procurement from local MSMEs, small business owners could generate more income.

Accelerating Digital Economic

The transition to cashless transactions, e.g. Indonesian Credit Cards, will reinforce Indonesia’s readiness to face economic digitalization. Moreover, this phenomenon will bring numerous benefits to the country’s economy, including more guaranteed resilience during face-to-face activity restrictions and increased trust from other countries.

In addition, the benefits of the digital economy are also suitable to tackle logistic challenges in ensuring equal development in Indonesia, owing to Indonesia’s geographical location as an archipelagic state. Therefore, through KKI, digital economic transformation in Indonesia will take place faster and all walks of life can immediately benefit from the positive impacts of the national development.

Now, we can clearly see how Indonesian Credit Cards play central roles in contributing to the national economy. From reducing the cost of money supply and the amount of idle cash, risks of financial fraud, and supporting equal development for everyone, this credit card will further strengthen Indonesia’s economy in the global arena.


As a token of support on these missions—particularly in suppressing fraud risks—Jalin presents 3D Secure technology that is reliable. Therefore, all transactions made using cards with the GPN logo, including KKI, will be more secure and protected. For further information about Jalin services for financial service providers, click here!