Indonesia is undergoing a significant shift in its payment landscape. Recognizing the transformative potential of digitalization, Bank Indonesia introduced the Indonesia Payment System Blueprint 2025 (IPS 2025) as a roadmap to a future where domestic financial infrastructure takes center stage. This vision is rapidly materializing as Indonesia recently made headlines when its President, Joko Widodo, announced that the country would gradually phase out the use of Visa and Mastercard, in favor of a new national payment system.

The Bank of Indonesia announced that the country will introduce a new national payment system which is set to replace VISA and MasterCard in state-owned enterprises and potentially expand further. This move aims to reduce reliance on foreign payment networks and foster greater financial sovereignty. President Jokowi made a decision to issue domestic credit cards on April 2025, further solidifying this commitment.

The new system will be based on the nation’s interbank system, and be called Gerbang Pembayaran Nasional (GPN) or the National Payment Gateway. The establishment of GPN presents an option to use a payment method without incurring the high switching costs associated with international networks. Prior to the GPN, about 90 percent of card transactions in Indonesia were controlled by international networks such as Visa and Mastercard, giving them considerable leverage.

The shift towards GPN is expected to boost domestic economic activity, reduce transaction costs for businesses, and empower Indonesian banks. While the complete transition will take time, the move signals a clear intention to strengthen Indonesia's financial infrastructure and reduce its dependence on global payment giants like Visa and Mastercard. The outlet reported that the implementation will proceed cautiously, ensuring a smooth transition for consumers and businesses alike.