Washington cited Indonesia’s QRIS payment system as a non-tariff barrier during recent tariff negotiations, despite the system having become a key instrument of Indonesia’s soft diplomacy across Asia. With the right strategy, Indonesia could also promote its system in the EU.
Key takeaways:
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QRIS is an Indonesian digital payment innovation that has been criticized by the US but which has significantly benefited Indonesia’s economy since its launch in 2019.
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Indonesia has successfully introduced QRIS in several Southeast Asian countries and is now expanding it across the broader Asian region.
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Indonesia’s QRIS experience could also serve as a model for the EU as it seeks to reduce reliance on US-based payment systems.
The success behind QRIS
Indonesia was hit with 32% duties as part of the US “Liberation Day” tariffs. Washington argued that Indonesia had implemented non-tariff barriers to US exports, such as its halal certification requirements and the QRIS (Quick Response Code Indonesia Standard) payment system. According to the Office of the US Trade Representative, American banks and payment service providers were not consulted by Bank Indonesia (BI), the country’s central bank, when it developed the QRIS policy.
According to BI’s official website, QRIS was launched in August 2019 (coinciding with Indonesia’s 74th Independence Day) as the national standard for quick response (QR) codes to simplify and secure digital payments. By the end of 2019, all QR codes from electronic payment providers were unified under QRIS. From January 2020, merchants were required to use QR codes bearing the QRIS logo. To align QRIS with global standards, BI developed it in collaboration with the Indonesian Payment System Association and based it on EMVCo standards (Europay, Mastercard, and Visa). According to Rissalwan Handy Lubis, a sociologist at the University of Indonesia, the US’s criticism of QRIS appears to be driven less by economic concerns than by a desire to keep Indonesia dependent on US-controlled payment networks such as Visa, Mastercard, and American Express.
Since its inception, QRIS has gained widespread popularity. By November 2024, it had over 55 million users, meeting BI’s target. As of Q1 2025, QRIS facilitated 2.6 billion transactions worth approximately US$15.6 billion. BI also noted that QRIS’s growth coincided with a decline in debit card usage. Millions of Indonesians have embraced QRIS for its ease of use, efficiency, and interoperability. The central bank credits the system with boosting economic performance for Micro, Small, and Medium Enterprises (MSMEs), especially in rural and underserved areas. Indeed, the system has reached over 38 million vendors, 93% of them MSMEs.
In recent years, QRIS has emerged as a tool of soft diplomacy. Indonesia has successfully expanded its reach to several Southeast Asian countries, with QRIS now interoperable with payment systems in Malaysia, Thailand, and Singapore. In late April 2025, despite mounting scrutiny from Washington, BI announced plans to expand QRIS to other Asian markets, including Japan, India, South Korea, China, and Saudi Arabia, to build cross-border partnerships that would eventually allow QRIS to be interoperable with these countries’ payment systems.BI signed a memorandum of understanding with the Bank of Korea in 2024 to facilitate QR-based payments. In May 2025, it announced that QRIS would become usable in China and Japan starting in August 2025. That QRIS is already accepted in a global financial hub like Singapore and is soon to be used in China and Japan highlights the system’s credibility. If Indonesia’s expansion into Asian markets succeeds, Jakarta should aim to introduce QRIS to the world’s largest single market: the EU.
Shared interest
Just hours before the US imposed a 20% tariff on EU exports on April 2, European Central Bank President Christine Lagarde called for a revolution in European payment systems to reduce dependence on platforms from the US and China. Her remarks became even more pertinent following another round of tariff flip-flops in May, when the White House imposed—and then withdrew—50% tariffs after a call with European Commission President Ursula von der Leyen. In mid-April, von der Leyen noted a silver lining to US protectionism: increased interest from global partners in trading with the EU. Brussels has confirmed its intent to diversify trade relationships with the Global South to mitigate Washington’s erratic behavior. Indonesia, in turn, has expressed its desire to finalize the Indonesia-EU Comprehensive Economic Partnership Agreement to address the uncertainty caused by Washington’s capriciousness. This moment presents an opportunity for Jakarta to also promote QRIS as part of its broader economic partnership strategy.
If Indonesia decides to introduce QRIS in the EU, the central question will be: how can it convince European stakeholders? The answer lies in framing QRIS as a practical, low-cost innovation that supports Europe’s goal of diversifying its digital payment infrastructure. The US trade war should make it clear to Europe that reliance on US-based payment systems can expose the EU to external shocks. Geopolitical tensions also underscore the importance of a stable and resilient digital payments ecosystem. The more options available, the better.
Assuming Brussels is willing to consider the idea, what would be the cost of implementing QRIS in Europe? Nofie Iman Vidya Kemal, a lecturer at Universitas Gadjah Mada, describes QRIS as a “frugal innovation” that requires only a mobile phone and no point-of-sale machines or new infrastructure, which has facilitated a rapid shift within Indonesian society in its transition to a cashless economy. QRIS also allows faster fund disbursement to vendors compared to Visa or Mastercard.
From this perspective, QRIS addresses several EU priorities. It can be implemented with low to zero cost, reducing the financial burden of building a new system from scratch. Its operational presence in countries such as Singapore, Japan, and China demonstrates its capacity to operate in advanced economies. Its simplicity and reach make it a tool for financial inclusion, a crucial pillar of the EU’s digital agenda and vital for fostering economic growth.
Way forward
If Indonesia hopes to bring QRIS to the European market, several steps must be taken. First, BI will need to ensure full compliance with the EU’s General Data Protection Regulation and the Payment Services Directive 2, which govern data privacy and digital payment security.
Second, as with South Korea and Japan, BI should initiate formal technical dialogues with both the European Central Bank and national regulators, such as France’s Prudential Supervision and Resolution Authority or Germany’s Federal Financial Supervisory Authority (BaFin), demonstrating its readiness to operate within European legal frameworks.
Third, BI should involve European financial institutions with business links in Indonesia and offer them real economic incentives to adopt QRIS. Cooperation with European digital payment firms such as Klarna or Revolut could also accelerate integration.
Fourth, BI would benefit from considering the launch of a regulatory sandbox initiative in Europe, a controlled environment where new technologies can be tested under the supervision of regulators. As a pilot, Indonesia could select smaller EU countries such as Austria or the Netherlands. This would allow BI to test a modular rollout, perhaps initially targeting the Indonesian diaspora in Europe or European tourists visiting Indonesia. BI could also explore the use of QRIS for cross-border e-commerce, notably to support European purchases of Indonesian MSME products.
Finally, BI must present QRIS as a system that upholds values consistent with the EU’s digital vision: transparency, efficiency, and inclusion. Done right, introducing QRIS in Europe would not only deepen people-to-people ties but could also encourage EU member states to explore similar systems in the future.
