The most successful national QRIS project is now being criticized by the United States, what is the reason?

Indonesia's Quick Response Indonesian Standard (QRIS) payment system has emerged as one of Southeast Asia's most successful digital payment initiatives, revolutionizing financial transactions and boosting economic inclusion. However, this homegrown success story is now facing criticism from the United States, creating tensions between the two nations over financial technology policy.

What is QRIS?

QRIS is Indonesia's standardized QR code payment system launched by Bank Indonesia in 2019. It allows consumers to make payments across different payment service providers using a single QR code, eliminating the need for merchants to display multiple QR codes for different payment apps. The system has been particularly beneficial for micro, small, and medium enterprises (MSMEs), which make up the backbone of Indonesia's economy.

The remarkable success of QRIS

Since its launch, QRIS has demonstrated impressive growth. According to the Indonesian Payment System Association (ASPI), by the fourth quarter of 2024, QRIS recorded 779 million transactions totaling Rp82 trillion (approximately USD 5.3 billion). The system has attracted 55 million users and 36 million merchants, more than doubling since late 2021.

The Indonesia Financial Services Authority (OJK) reports that financial inclusion in Indonesia reached 85.1% in 2022, up significantly from 67.8% in 2016 before QRIS was implemented. Bank Indonesia notes that 90% of QRIS users are MSMEs, helping to digitize the segment that contributes about 61% to Indonesia's GDP.

Dr. Eisha Maghfiruha Rachbini, an economist from IPB University, explains that QRIS "was designed to help people more easily access digital financial services across platforms, both banking and non-banking institutions." The system has demonstrably reduced transaction costs for businesses, consumers, and banks.

Why is the United States criticizing QRIS?

In March 2025, the Office of the United States Trade Representative (USTR) released its annual report identifying QRIS and Indonesia's National Payment Gateway (GPN) as barriers to U.S. financial services trade. Their criticisms center on several issues:

1. Exclusion of international stakeholders: The USTR claims that U.S. companies were not given adequate opportunities to participate in or provide input during QRIS development.
2. Technical incompatibility: The U.S. alleges that QRIS is not technically compatible with international payment systems.
3. Market access limitations: The USTR views GPN as restricting the operations of U.S. companies, particularly banks and financial services providers.
4. Lack of transparency: The U.S. argues that the policy formulation process for both QRIS and GPN lacked transparency and did not involve international stakeholders.

Indonesia's response

Indonesian officials and experts have strongly defended QRIS against these criticisms. Aru Armando, Deputy Chairman of Indonesia's Business Competition Supervisory Commission (KPPU), stated that the U.S. must recognize QRIS and GPN as legitimate mechanisms promoting healthy competition in the payment market.

"QRIS and GPN give people the freedom to choose payment methods according to their needs," Armando explained. He noted that Indonesia has never restricted the use of Visa or Mastercard but warned that if the U.S. pressures Indonesians to choose these international payment networks, it would violate fair competition principles.

Coordinating Minister for Economic Affairs Airlangga Hartarto affirmed that Indonesia remains open to collaboration and ensures equal opportunities for all parties in its payment ecosystem. Similarly, Bank Indonesia's Senior Deputy Governor Destry Damayanti emphasized that cooperation depends on each country's readiness.

The real impact of QRIS on MSMEs

Research has shown that digital financial systems like QR code payments positively correlate with increased financial transaction volumes, leading to higher sales and profits for MSMEs. In regions like Indramayu, Ambon, and Belitung, QRIS has improved transaction efficiency, financial record-keeping accuracy, and even enabled businesses to expand sales beyond their local areas.

QRIS has also helped MSMEs access formal financial credit. Banking statistics from OJK show that credit distribution to MSMEs, particularly micro-businesses, has increased over the past four years in line with the growing number of QRIS merchant users. Micro-business credit reached Rp669 trillion in 2024, a 71.6% increase compared to 2021.

Bank Indonesia has already established bilateral cooperation for cross-border QRIS use with countries like Malaysia and Thailand. Dr. Eisha believes the opportunity for broader collaboration, including with U.S. payment service providers, remains wide open.

"This criticism could actually serve as a catalyst to strengthen international cooperation in cross-border payment systems," she noted, adding that the critique should motivate Indonesia to continue improving QRIS quality and competitiveness both nationally and globally.

Why is QRIS popular?

Unlike Western countries that rely heavily on credit card-based payments, QR code payment systems are considered simpler and more inclusive in many Asian countries. In Indonesia, the increasing smartphone ownership, the growth of e-commerce, and the high costs of point-of-sale (POS) terminals for small businesses have all contributed to QRIS's popularity.

A survey by Populix in April 2024 found that Indonesians primarily use QRIS because it offers an easy and quick payment system. The COVID-19 pandemic further accelerated the adoption of contactless payments due to social distancing requirements.

The bigger picture

The tension over QRIS reflects broader dynamics in global digital payment systems. As developing countries create their own financial technology ecosystems, established international players may find their traditional dominance challenged.

For Indonesia, QRIS represents not just a payment system but a tool for financial inclusion and economic sovereignty. With transaction volume now surpassing ATM debit card transactions, QRIS has become an integral part of Indonesia's digital economy infrastructure.

As Dr. Eisha hopes, perhaps this criticism from the U.S. will ultimately serve as motivation for QRIS to expand its services, increase financial access, and contribute to more inclusive economic growth, not just in Indonesia but potentially across borders as well.