The Office of the US Trade Representative (USTR) assessed QRIS as a trade barrier in its “National Trade Estimate Report 2025”. The report, which includes broader trade concerns, underpins the plan by the administration of President Donald Trump to impose 32 percent tariffs on Indonesian products as of July.

QRIS synchronizes Indonesia’s electronic money payments, digital wallets and mobile banking into one national standard system. By scanning a QR code, payment takes only a matter of seconds, allowing a swift cashless transaction compared with using cards.

The USTR report criticizes how QRIS implementation limits access for international stakeholders, particularly US companies, and creates an imbalance in Indonesia’s digital payments market.

The report also cites Indonesia’s National Payment Gateway (GPN) as less transparent and limits foreign ownership. The card, which is for domestic use only, eases administrative financial burdens, encourages cashless payment and facilitates social disbursement of social assistance.

Putting the trade assessment aside, QRIS helps small businesses and low-income groups in Indonesia to access modern payment facilities, closing the gap that Visa and Mastercard cannot provide. Throughout 2024, more than 30 million small businesses and merchants across Indonesia made transactions via QRIS.

QRIS transaction value and popularity have skyrocketed since Bank Indonesia (BI) introduced it to the market in August 2019, months before COVID-19 entered Indonesia. Throughout 2024 QRIS recorded 2.2 billion transactions with a total value of Rp 242 trillion (US$14.9 billion). This figure increased by 188 percent compared with the previous year.

In the first quarter of 2025, BI’s latest report noted that QRIS transactions surged to 2.6 billion with a transaction value reaching Rp 262 trillion.

So, why does QRIS have such a huge reputation?

Massive digital adoption and user convenience spurred its growth, contributing to financial inclusion and supporting the growth and productivity of the Indonesian economy.

According to a 2024 survey, the main reasons Indonesians use QRIS are its simplicity (49 percent) and transaction speed (42 percent). Promotion factors (33 percent) and the habit of not carrying cash (28 percent) also add to its appeal.

Wide outlet coverage (23 percent) and perceived security (22 percent) are also factors causing QRIS to be increasingly in demand. This practicality and growing digital habits in Indonesia are the main drivers of QRIS adoption.

From the merchant’s perspective, QRIS has advantages over card payments. The card system requires expensive EDC machines that cost Rp 3 million to Rp 5 million per device.

Meanwhile, the merchant can receive payments via QRIS with just a single printed QR code, without needing extra equipment. QRIS transaction fees are also much lower at around 0.3 percent of transactions (even 0 percent for micro merchants), compared with 2–3 percent on cards.

QRIS is also compatible with all Indonesian and most ASEAN countries’ e-wallets.

According to the Indonesian Payment System Association, QRIS has become “the king of digital payment” channels for local transactions. Meanwhile, Visa–Mastercard’s position remains dominant for cross-border payments.

The USTR claims, developed without input from international stakeholders, may serve as an empty accusation.

BI designed QRIS to meet domestic needs while aligning with international standards like EMVCo standards carried by Europay, Mastercard and Visa (EMV). The three global payment giants are also members of the Indonesian Payment System Association and were involved in the QRIS drafting process, accompanying the government and the central bank. Given how strictly regulated digital payment systems are, it is hard to believe the US lacks information about QRIS.

However, the label of “trade barrier” has already been attached by the US and could ruin Indonesia’s negotiation process with other countries.

First, this issue could potentially hamper QRIS adoption in other countries. While Singapore, Malaysia and Thailand have already facilitated QRIS into their national payment systems, further expansion into India and South Korea could be hampered by concerns about creating friction with Washington.

Second, the classification of QRIS as a trade barrier could also hinder the expansion of Indonesian small businesses into overseas markets. In fact, this standard was designed so that micro and small business actors can speed up the transaction process, including cross-border transactions with foreign buyers.

Is QRIS an advantage or disadvantage? Both. It brings opportunities and challenges. The impact of the USTR claim for Indonesia will depend largely on its negotiating strategy in the coming terms.

For now, the 32 percent-tariff sanction, affecting products from shoes and textiles, to nickel components, has been suspended until early July. The two countries are continuing negotiations, including technical discussions on QRIS access, since the US complaint aired.

But Indonesia can turn the US protest into an opportunity. The threat of tariffs forced the two countries into a two-month negotiation window.

Indonesia could trade off small adjustments to QRIS rules for larger rewards, such as lower tariffs on nickel products or new investment commitments from the US, especially in the fields of technology or the latest financial systems.

At least, BI has stated that “If America is ready, we are ready”, a nod to the possibility of preparing clearer guidelines for both countries. Arranging such documents will benefit all parties, including foreign and local business.

Lastly, Indonesia needs to share the success story of QRIS more widely. Currently, QRIS serves 56 million users, supports payments at more than 33 million outlets and is seamlessly connected to several countries such as Malaysia, Singapore and Thailand. This shows that the payment system is open, beneficial and contributes to financial integration across countries and regions.

QRIS’s rapid growth, along with how the US feels threatened by it, shows huge potential for Indonesia’s digital finance. This can actually contribute to its bargaining position in the international arena in this digital era.

---

Farhan Mutaqin is a PhD researcher at University of Edinburgh, where Lukas Andri Surya Singarimbun is a graduate student in public policy. The article is republished under a Creative Commons license.