Plastic money: An employer supervises the printing of Bank Mandiri credit cards at the state-owned lender's headquarters in Jakarta in 2016.(Antara/Puspa Perwitasari)
Indonesia Expat: Indonesian Government to Launch the Domestic Credit Card
President Joko Widodo’s statement that he prefers credit cards used by the government to be issued by domestic issuers rather than foreign companies has been met with positivity from Indonesia’s credit card issuers.
Executive Director of the Indonesian Credit Card Association (AKKI), Steve Marta said that the government should encourage the use of government credit cards that utilise local issuers and public credit cards.
“It’s not only government credit cards but I think we should also have local credit cards one day,” Marta told CNBC Indonesia on Thursday, 6th March 2023.
Marta stated that the banking sector’s credit card issuers would also endorse this measure, citing security risks associated with credit cards issued overseas, as highlighted by Jokowi’s comments about US sanctions against Russia during the Ukraine conflict.
Read more ....
Update: BI pushes ahead with domestic credit card to cut reliance on foreign ones (Jakarta Post)
WNU Editor: Almost everyday I am reading a news report from a country or a foreign financial institution that has made the decision to minimize and/or move away completely from the US dollar. But in the West there is little if any coverage in the main stream media of these developments.
What it's like to live life not trusting your bank or your money - Monica Showalter
ReplyDeleteAlternate media is covering it.
It’s beginning to cascade now. If you look at the long range DXY chart, it’ll show a clear pattern of lower highs and lower lows. The next low will be under 75. Next year is going to be chaos in the west. That’s when I believe Venezuela style hyperinflation will begin
ReplyDelete2;13
ReplyDeleteHope you are wrong
BUT...thank you very much for the heads up. It is deeply appreciated by those of us who are not stock market or FED gurus
That stuff is like sorting through broken glass to find a shot glass to drink out of.
This is another example of a post on this blog where I think the actual article is unrelated to the comments that WNU Editor makes. Either I am not understanding something, or WNU Editor doesn't understand.
ReplyDeleteWNU Editor says the article is about Indonesia moving away from the US dollar. But the article says no such thing. This is about credit card issuers, not the US currency. The Indonesian government wants government credit cards to be issued by local institutions, not international ones. Yes, this is because of concerns that foreign issued credit cards could be impacted by foreign sanctions, but this has nothing to do with the US dollar. Many countries have local institutions that issue their own credit cards.
The article also talks about Indonesia wanting to develop its own credit card network (a separate thing from credit card issuers). That too has nothing to do with the US dollar. Many countries have their own credit card networks. The major US networks of Visa, Mastercard, Discover, and American Express are well known, but there are plenty of others. South Korea has BC Card. Japan has JCB. Turkey has Troy. The EU has EPI. India has RuPay. Nigeria has Interswitch. This is not unusual and is not an indication the country plans to abandon the dollar as the international reserve currency.
Yes, a country having its own credit card network makes it less dependent on foreign financial institutions. That is why Russia established Mir as a competitor to Visa and other networks. There are both benefits and costs to using a new system. But having one has never been an indicator that you want a different currency as the international reserve currency, or that you are detaching from Western financial institutions. All countries have their own banks.
Chris
Could it be that major international credit cards use the USD to trade and settle? Ditch the big cards, less demand for USD? That’s just my thought anyways, not positive on it.
DeleteHe doesn’t even read articles and uses this page for Russian propaganda🤷🏼
DeleteChris, this anonymous reader agrees with you 100%.
ReplyDeleteFor all of you celebrating the downfall of the dollar, or hoping for it, or even expecting it...
Let's assume for a second that Indonesia was actually moving away from the dollar. It's the 16th largest GDP. That's would be a big deal, no question.
But if you stopped for a moment and realized that Indonesia would only rank as the 5th highest GDP state in the USA, you'd calm down and realize that the US dollar is going no where.
And I saw a leprechaun riding a unicorn last night.
Delete^ You were on the same naked bike ride I was on
ReplyDeleteChris
ReplyDeleteYour answer..... is in your question.
Your words
"Yes, a country having its own credit card network
makes it less dependent on foreign financial institutions."
This is exactly why these countries are doing it. They are covering all their bases due to a very uncertain future.
They are basically de-linking themselves from the dollar. Not that "it will fail" ..... "but, it might fail" that is the concern. These US credit card companies and directly linked to the USD banking system and therefore the FED.
IF (a big if) the US has an Economic melt down, those visa and Master cards may become useless or they can be curtailed thru US governmental action. This is a lesson learned from the Russian sanctions. IF you had a Visa card in Russia, you got screwed. The world saw this. So the US has only themselves to blame for people not wanting to use thier financial instruments.
The other action is this. This credit card action is not alone in the Global economy universe. Central banks around the Globe are stocking up on gold and home reserves. The Saudis are cozying up to the Chinese and Russians. Who would have thought to ever see that day?
It is like the Foreign banks and governments are seeing a possible calm before the storm.
Lastly, look at this current trend outline above.
And you have to ask yourself.
Why?
This Never happened 5 years ago, 10 years ago or 30 years ago. This is all new. But why? Why NOW? That is the key question. And the editor is following this theme that the last 3 years have given birth to.
maybe now you understand.
Bottom line: banks and countries are hedging their bets, not a good sign.