Jakarta. Indonesia should not bow to US pressure over its national digital payment systems, an economist said Thursday, following American criticism of policies limiting foreign ownership and control in domestic payment networks.

Piter Abdullah Redjalam, Executive Director of Segara Research Institute, said Indonesia’s Quick Response Code Indonesian Standard (QRIS) and National Payment Gateway (GPN) represent the country’s financial independence and digital sovereignty. The US critique, he said, is rooted not in interest to participate but in dissatisfaction over restrictions on foreign stakes in the country’s payment infrastructure.

“The US criticism isn’t about joining QRIS. It’s about limits on foreign ownership and voting rights in national payment institutions, which undermines their longstanding dominance through Visa and Mastercard,” Piter said on the Investor Market Today program, streamed via Beritasatu’s YouTube channel on Thursday.

In its 2024 National Trade Estimate Report on Foreign Trade Barriers, the US flagged Indonesia’s QRIS and GPN as potential trade barriers, sparking concern among officials in Jakarta. But Piter urged the government to stand its ground and not cede control of the domestic financial system amid rising trade tensions.

“Let’s not waver just because of US criticism. This is our moment to strengthen our system. We’re already ahead of many countries in building an inclusive, sovereign national payment ecosystem,” he said.

QRIS and GPN, both initiatives from Bank Indonesia, have helped modernize and streamline the country’s digital payment landscape. But Washington’s concern, Piter said, reflects broader unease with Indonesia’s push to reduce foreign influence in its financial system.

The Central Bank had said it was open to working with any country, including the United States, on QRIS and other fast payment technologies.

Negotiation with international partners remains important, he acknowledged, but core principles must not be up for compromise. “We can negotiate, but sovereignty and independence are non-negotiable,” he said.

Despite the US being a major trading partner, Piter said Indonesia is not solely reliant on Washington. Strong trade ties with China, ASEAN, and the Middle East offer alternative routes to expand export markets and enhance competitiveness.

“In global negotiations, Indonesia must not act inferior,” he said. “Our negotiating team must be equipped with solid data, deep understanding, and the courage to defend our principles.”

“We’re not a small country that can be pushed around. If there’s no middle ground, we must be prepared to stand firm, for the dignity of our nation,” Piter concluded.