Shocking Success of Mastercard and Visa Lobbying Efforts

By Editorial Team 07/10/2019
Summary

Mastercard and Visa are allowed by the Indonesian government to continue to operate outside the provisions of the national payment gateway (GPN) thanks to the lobbying efforts of the United States Trade Representative (USTR). It means that the two payment network companies from the US can process credit card transactions without having to partner with Indonesian banks.

As reported by Reuters on Friday (4/10), this permit was exchanged with the generalized system of preferences (GSP) status in trade with the US. Indonesia, through this GSP status, gets a tariff relief for goods exported to the US worth US$ 2 billion per year or equivalent to Rp 28 trillion (assuming an exchange rate of Rp 14,000 per US$ 1). The report also states that credit cards will be excluded from the application of the GPN policy.

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