4 Benefits of Indonesian Credit Cards for the Public

During FEKDI (Indonesian Digital Economy and Finance Festival) 2023 held on May 7-10, 2023, the government of Indonesia introduced the Indonesian Credit Card (KKI) as a rebranding of the Government Credit Card. Accordingly, this type of credit card can only be used by central and regional governments rather than individual State Civil Apparatus (ASN).

However, the use of KKI also brings numerous benefits to the general public, particularly in terms of well-being. What are the examples? Let's explore them further in this article.

Improvement in the Quality of Infrastructure

While primarily intended for use by central and regional governments, the base concept of KKI's primary function is not significantly different from the credit cards available to the general public.  Just as you can purchase anything without having to settle the transaction upfront, KKI allows regional governments to directly acquire what they need without requiring immediate cash payment.

However, the context of using these two types of credit cards differs. The funds from KKI can only be used for the government’s operational needs or anything aligned with national development objectives.

For instance, specific work units can utilize KKI for the repair of public facilities such as roads, pedestrian walkways, public transportation, and much more. As a result, the public can utilize these facilities with increased safety and comfort due to their improved condition.

Faster Services

One of the primary objectives of launching the Indonesian Credit Card is to expedite the payment process of the State Budget (APBN). This is because, in the process that existed before the introduction of KKI, relevant parties had to wait until the funds from APBN were disbursed before they could proceed with expenditure activities.

Naturally, this would take some time and potentially make it harder for ASNs to address the needs of the general public due to the lack of improved working facilities.  However, with the existence of KKI, funds for improving the necessary infrastructure for ASNs’ work are immediately available.  Consequently, they can accomplish tasks swiftly with better equipment, including in serving the general public.

Improving the Well-being of Business Owners

The benefits of the Indonesian Credit Card (KKI) are particularly noticeable for owners of Micro, Small, and Medium Enterprises (MSMEs).  Why is this the case? To support local economic growth, the government has mandated that KKI cannot be used to purchase imported goods or services. In other words, both central and regional governments can only meet their needs with products and services provided by local MSMEs.

Thanks to the stable income provided by this provision, MSME owners have a greater opportunity to improve their quality of life. Additionally, they can participate in national development and reap its benefits.

Promoting Equitable Development

Recognizing the potential of the Indonesian Credit Card to advance the national economy, Bank Indonesia has initiated a strategy to encourage more widespread KKI usage, rather than confining it to specific regions. Consequently, Bank Indonesia has conducted various sessions to promote KKI implementation and its benefits for the government at the national level.  Naturally, this step is related to the impact of KKI on equitable development.

It is no secret that one of the biggest logistical challenges in achieving infrastructure equity in Indonesia is the country's archipelagic nature, which separates many provinces. However, with the use of KKI, both central and regional governments can directly utilize available funds to enhance infrastructure quality in their respective locations. Furthermore, they can also involve local MSME owners.  This way, other regions can also achieve some progress.

While the Indonesian Credit Card is designated for the spending needs of the central and regional governments in accordance with the contents of the APBN, they are not the only ones who will benefit from its use.

In fact, the general public, including individuals not employed in the governmental sector, will still experience its benefits through the accelerated improvement of infrastructure quality.  Additionally, MSME owners will have more opportunities to compete in the market and remain profitable. 

To support the implementation of KKI, Jalin provides the Jalin Verified service infrastructure that ensures the security of KKI transactions with 3D Secure technology, preventing the threat of fraud. This way, people from all walks of life can continue to enjoy its benefits. For further information about this service, please visit the official Jalin website.