Indonesian Government Releases QRIS for Safer Transaction
To promote the Non-Cash National Movement (Gerakan Nasional Non Tunai/GNNT), the government through BI launched the Indonesian Standard Quick Response code (QRIS) on the Republic of Indonesia’s Independence Day. Quoted from a press release Bank Indonesia’s Governor Perry Warjiyo said that QRIS carries the spirit of UNGGUL (‘Universal, GampanG, Untung and Langsung’ or ‘Universal, Easy, Beneficial, and Direct’) which aims to encourage transaction efficiency, accelerate financial inclusion, and advance Micro Small Medium Enterprises (MSMEs) which in turn can drive economic progress.
The standardization enables organizers of QR codes to connect with each other, creates healthy competition between the organizers, and prevents phishing practices (as they are rife in China). In China, QR code is widely used to make transactions, and this situation provides opportunities for phishing actors. Quoted from Channelsnewsasia losses, due to phishing via QR code in Guangdong province alone reached 13 million US dollars.
The security system of QRIS is guaranteed because it is prepared by Bank Indonesia and the Indonesian Payment System Association (Asosiasi Sistem Pembayaran Indonesia/ASPI). It is also established based on the international standard EMV Co – the agency that sets international QR code standards for payment systems.
For the initial stage, QRIS focuses on implementing Merchant Presented Mode (MPM) model for QR Code Payment where a seller (merchant) displays the payment QR Code to be scanned by a buyer (customer) when making a payment transaction.
QRIS will take effect on 1st January, 2020 to give preparatory transition period for Payment System Service Providers (Penyelenggara Jasa Sistem Pembayaran/PJSPs).