Expansion of Digital Payments System amidst BI Leadership Transformation
Bank Indonesia (BI) is expanding its national QR payment system, QRIS, to connect with India’s Unified Payments Interface (UPI) after recently linking it up with China. The new linkage is targeted to be completed by end of 2026. India’s UPI is one of the largest and most successful real-time payment systems, while China's payment ecosystem is among the most widely used. Such linkages will help Indonesia to support cross-border transactions with a vast network of users through banking apps and e-wallets. Originally launched in 2020, BI reported a 116 percent year-on-year jump in QRIS transactions during the first quarter of 2026.
As BI expands QRIS interoperability to enable faster and lower-cost cross-border transactions, Indonesia is laying the foundation for an ASEAN–South Asia payments corridor that will benefit small businesses and sectors such as tourism. Beyond reshaping digital commerce, the Indonesian Government is building AI governance in financial services as a part of its ambition to become a regional architect of digital payments infrastructure. BI and other financial regulators now encourages banks, e‑wallet providers, and fintechs to adopt AI‑driven fraud detection, risk scoring, and real‑time compliance tools.
Indonesia’s digital payment expansion is unfolding against a moment of uncertainty after the resignation of BI Governor Perry Warjiyo on July 27. The abrupt resignation was announced by the State Secretary at BI’s headquarter, after S&P’s credit rating announcement. Following the resignation, the financial markets reacted negatively and rupiah weakened. Senior Deputy Governor Destry Damayanti, is currently acting as an interim Governor. A few names floated as potential candidates, such as the former BI Governor, Burhanuddin Abdullah (Gerindera Party) and current Finance Minister Purbaya Sadewa. Purbaya clarified that there has been no instructions from the President regarding the replacement.
