Citing the threat of being dependent on foreign companies for domestic payments, and using Russian sanctions as an example of the threat financial providers become when used as a tool in US foreign policy, they are working toward an all local solution for domestic use.

Russian banks are acting as advisors and sharing their experiences from setting up their own payment system in 2014.

Indonesian authorities stated that several Asian nations have contacted them about creating a regional network for accepting each others cards as more nations look to be minimize risk in their banking systems.

With the fourth largest population in the world, Indonesia is one of Visa as Mastercards largest markets.

And that’s how it’s going to happen folks. One tiny brick at a time…

#sanctionsbackfiring

Wise move by Indonesia to create a domestic payment-processing capability. And wise move by Russia to score some brownie points with Indonesia.

You're telling me they won't accept Visa/Mastercard? Or they're setting up a domestic competitor? Those are two very different things, and it sounds like the latter.

Indonesia is an odd place. It's a democracy, but most large companies are owned by relatives of government officials. It's even worse than Italy in that regard.

Indonesia is also the most ethnically fractioned country outside Africa (except maybe Afghanistan).

Nothing wrong with being self reliant, imo.

(03-21-2023 09:11 AM)VA49er Wrote:  Nothing wrong with being self reliant, imo.

Yes Biden should take a page from that book.....

(03-21-2023 09:09 AM)Captain Bearcat Wrote:  You're telling me they won't accept Visa/Mastercard? Or they're setting up a domestic competitor? Those are two very different things, and it sounds like the latter.

No doubt it will be the latter.

For now.

(03-21-2023 11:13 AM)Native Georgian Wrote:  

(03-21-2023 09:09 AM)Captain Bearcat Wrote:  You're telling me they won't accept Visa/Mastercard? Or they're setting up a domestic competitor? Those are two very different things, and it sounds like the latter.

No doubt it will be the latter.

For now.

it’s scary how too many do not comprehend how fragile ANY fiat system can be crippled in a nano once the players conjoin as the chips are taken off the table a smidge at a time …

oh wellzy…

#revaluatingMuhTulips

(03-21-2023 11:28 AM)stinkfist Wrote:  it’s scary how too many do not comprehend

You could’ve stopped there, LOL

In my own little corner of the world, I am continually amazed how uninformed people are about very basic facts of life. These are adults with college degrees and stable jobs in the corporate world. And yet they are as ignorant as a box of rocks. How did that happen?

(03-21-2023 09:09 AM)Captain Bearcat Wrote:  You're telling me they won't accept Visa/Mastercard? Or they're setting up a domestic competitor? Those are two very different things, and it sounds like the latter.

Indonesia is an odd place. It's a democracy, but most large companies are owned by relatives of government officials. It's even worse than Italy in that regard.

Indonesia is also the most ethnically fractioned country outside Africa (except maybe Afghanistan).

A domestic system. Not sure if it would considered a competitor to Visa and Mastercard locally because it looks like it will simply be the default. Of course lots of places will still accept foreign cards, but every transaction every Indonesian performs will be on a locally based card.

They had a big spat over fees about 4 years ago. Billions in processing fees flow out of a Indonesia every year. The US threatened Indonesia with their favored trade status if they threatened to regulate cars fees and “distort the free market.” So they are simply creating an alternative rather than squabble. It’s not a quick or easy thing to get set up, but with todays tech it’s a piece of cake compared to before I’m sure.

Visa and MasterCard will probably be just as widely accepted as they are now. But local credit and debit cards will no long run on those systems.

Why Visa, I wonder.

Comrade Todor. ты проплаченный русский зазывала

(03-21-2023 07:15 PM)Todor Wrote:  

(03-21-2023 09:09 AM)Captain Bearcat Wrote:  You're telling me they won't accept Visa/Mastercard? Or they're setting up a domestic competitor? Those are two very different things, and it sounds like the latter.

Indonesia is an odd place. It's a democracy, but most large companies are owned by relatives of government officials. It's even worse than Italy in that regard.

Indonesia is also the most ethnically fractioned country outside Africa (except maybe Afghanistan).

A domestic system. Not sure if it would considered a competitor to Visa and Mastercard locally because it looks like it will simply be the default. Of course lots of places will still accept foreign cards, but every transaction every Indonesian performs will be on a locally based card.

They had a big spat over fees about 4 years ago. Billions in processing fees flow out of a Indonesia every year. The US threatened Indonesia with their favored trade status if they threatened to regulate cars fees and “distort the free market.” So they are simply creating an alternative rather than squabble. It’s not a quick or easy thing to get set up, but with todays tech it’s a piece of cake compared to before I’m sure.

Visa and MasterCard will probably be just as widely accepted as they are now. But local credit and debit cards will no long run on those systems.

For this to work, they need to get widespread acceptance from both merchants and average customers for the new system.

To be widely accepted, the local system will have to be cheaper or faster than Visa/Mastercard. Good luck with that.


(And that's not even considering the chicken/egg problem: Customers won't get the local credit card if no merchants accept it, and merchants won't get the processing equipment if none of their customers use it).

(03-21-2023 05:28 AM)Todor Wrote:  Citing the threat of being dependent on foreign companies for domestic payments, and using Russian sanctions as an example of the threat financial providers become when used as a tool in US foreign policy, they are working toward an all local solution for domestic use.

Russian banks are acting as advisors and sharing their experiences from setting up their own payment system in 2014.

Indonesian authorities stated that several Asian nations have contacted them about creating a regional network for accepting each others cards as more nations look to be minimize risk in their banking systems.

With the fourth largest population in the world, Indonesia is one of Visa as Mastercards largest markets.

And that’s how it’s going to happen folks. One tiny brick at a time…

#sanctionsbackfiring

Indonesia has a lot of people, but a tiny economy.

According to the World Bank, only 2.4% of Indonesians have credit cards.

https://genderdata.worldbank.org/indicat...nder=total

I also looked at Visa's & Mastercard's annual reports. The word "Indonesia" doesn't even appear in the entire document for either firm.