How to Use the Indonesian Credit Card for Transactions

Before the introduction of the Indonesian Credit Card (KKI), the government issued the Government Credit Card (KKP) for State Budget (APBN) spending. However, in May 2023, during FEKDI 2023, the KKP branding was replaced by KKI to bolster the national economy, emphasizing digital transactions and accountability.  As such, do the ways to use these two types of credit cards remain the same, or have they undergone significant changes? Let's explore it further here!

Steps for Making Transactions with the Indonesian Credit Card

The Indonesian Credit Card comes in two different forms, i.e. digital and physical, similar to conventional credit cards. Where do the differences and similarities lie in the transaction process? You can find the answers in the following explanation:

Domestic QRIS KKI

When it was still known as the Government Credit Card, Domestic KKI was a digital credit card that could be used for payments with a QR code. However, before making transactions with this card, the owner must first complete an activation process through mobile banking. Then, they can follow these steps:

1. Open the QR code scanning feature in the mobile banking application of the KKI-issuing bank;
2. Choose the source of funds for payment;
3. Select the "Kartu Kredit Pemerintah Domestik (Domestic Government Credit Card)" option;
4. Input the payment amount if the merchant's QR code uses static mode or confirm the displayed amount if using automatic mode;
5. Enter the registered PIN;
6. The transaction is complete, and the proof will be included in the government’s current month's bill.

Physical KKI

The Indonesian Credit Card launched at FEKDI 2023 is of the physical type, so its usage differs from the Domestic QRIS KKI. Instead of bearing the Visa or Mastercard logo, this credit card now features the GPN logo.

Therefore, transactions for the physical KKI require an EDC that supports this payment method. After confirming the displayed amount and entering the PIN, KKI owners will receive a payment receipt, and the amount will be billed in the current month.

Advantages of Using KKI for Transactions

Utilizing KKI for transactions presents numerous benefits that not only favor its owners but also contribute to the overall national economy. Let's delve into its benefits below:

More affordable transaction costs

Both cardholders and merchants accepting KKI payments can reduce their expenses through this payment method. According to Perry Warjiyo, the Governor of Bank Indonesia, during FEKDI 2023, KKI transactions will incur a 0% transaction fee for government personnel. Meanwhile, business owners only need to pay according to a more efficient fee structure.

Real-time and swift transactions

Similar to non-cash payments in general, KKI allows cardholders and merchants to complete transactions more quickly. This is possible as the card supports real-time transactions, allowing business owners to immediately receive funds from buyers. Meanwhile, government personnel making purchases can immediately obtain proof of payment for submission to relevant parties in the transaction verification process.

Increased safety and efficiency

A primary concern about using cash is the risk of counterfeit currency and accounting errors on the financial team's end. These issues can lead to substantial losses for both sellers and customers.

However, KKI can mitigate these risks with state-of-the-art encryption technology commonly utilized in credit cards, known as 3D Secure. This ensures that funds are directly deposited into the destination account and transactions are accurately recorded.

Compatible with various merchants

To conduct transactions using KKI, cardholders simply need to locate merchants equipped with EDC terminals from the card-issuing bank.  For instance, BCA already accepts payments with government-specific credit cards using their EDC terminals for the cards they issue.

Therefore, whether it's for purchasing office supplies for the government, updating software for ASN (State Civil Apparatus)’s work, or booking travel tickets and accommodations for official trips, KKI owners can simply visit local merchants participating in Gerakan Bangga Buatan Indonesia (Proud of Indonesian Products Movement).

Despite now having a physical card format and a different way to use compared to its previous version, the Indonesian Credit Card still prioritizes ease of use for both its owners and sellers. Transaction costs using it are highly affordable, and the card is equipped with various technologies to ensure swift and secure transaction processes.

Jalin also supports the implementation of fraud-free KKI transactions by providing the Jalin Verified service infrastructure. Through this service, banking institutions can secure issued credit cards using 3D Secure technology, in accordance with the latest security standards. To learn more about other benefits of Jalin services, please visit this link!