Longing for a Tariff-Free QRIS

Micro and small businesses object to the imposition of a QRIS rate of 0.3 percent which is in effect on 1 July 2023. They wish that QRIS can be free of charge.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI.

KOMPAS/ADRYAN YOGA PARAMADWYA

The Quick Response Code Indonesian Standard (QRIS) code is installed in a shop on Jalan Kyai H Taisir, West Jakarta, Friday (7/7/2023). Bank Indonesia implemented a new merchant discount rate (MDR) of 0.3 percent for QRIS services for micro businesses starting July 1, 2023.

Wednesday (12/7/2023) afternoon, Rahmat (45), a fried seller who hangs out on the side of Jalan Margasatwa, Cilandak, South Jakarta, is serving customers. The buyer ordered five fried foods with a total price of IDR 10,000.

Because he didn't have exact change or small denominations with him, the buyer asked Rahmat, could he pay using QRIS? Rahmat replied that he could not. In the end, the buyer chose to go to a modern retail store near Rahmat's cart to buy a bottle of mineral water and get change in small denominations which he then used to pay for the fries. The transaction is complete, the customer returns to his car.

When asked by Kompas why he doesn't use QRIS, Rahmat said that before, he always put a unique code for QRIS payments pasted on the glass of his cart. However, about the last week he pulled it out. The reason is, starting July 1, 2023, payments using QRIS are subject to a rate of 0.3 percent of the transaction value charged to merchants.

"Yes, it's better to ask the buyer to pay in cash. There are no discounts," he chuckled.

Rahmat stated that he can sell 200-300 pieces of fried snacks with a revenue range of Rp 400,000-Rp 600,000 per day. If all transactions were conducted using QRIS transactions, then he would lose Rp 1,200-Rp 1,800 per day. With a similar assumption, he would lose a revenue of Rp 36,000-Rp 54,000 per month.

"For us, that much money is big, equivalent to being able to buy 1 liter of cooking oil," he said.

KOMPAS/HENDRA A SETYAWAN

Buyers used the Indonesian Standard Quick Response Code Payment System (QRIS) at a chicken noodle stall in the Simprug area of Jakarta on Tuesday (5/9/2023).

Rahmat hopes that QRIS payment will once again be exempt from fees. Moreover, his sales revenue has not been as good as before the pandemic. His sales are still around 80-90 percent of the pre-Covid-19 era.

In fact, according to him, the QRIS service makes it easier for fried sellers like himself. Because, they don't need to prepare a lot of cash for change. Recording is also tidier because it is directly recorded digitally.

"Desire, yes, QRIS should remain free of charge like it was before," said Rahmat.

The timing is not right

Contacted separately, Thursday (13/7/2023), Chairperson of the Indonesian MSME Industry Association (Akumandiri) Hermawati Setyorinny said, the decision to give a QRIS rate of 0.3 percent of the transaction value is clear burdensome micro and ultramicro entrepreneurs like Rahmat. According to him, the current QRIS tariff is not appropriate because there are still many MSMEs who have not fully recovered from the impact of the pandemic. In addition, he also regretted that there was no prior socialization to business actors.

"As a business person, Rahmawati continued, she understands that payment service providers (PJP) may need to incur network maintenance or infrastructure costs to keep the QRIS service running. However, she believes that 0.3 percent is too high for UMKM players."

"Please review this tariff as it burdens MSMEs," said Hermawati.

According to him, a 0.1 percent tariff could be a fair middle ground for all parties. In addition, he also requests a time lapse and socialization so that UMKM players can prepare for the provisions.

Rahmawati additionally suggested that the tariff expenses could also be paid out of the SME development program costs carried out by major banks which are also a part of PJP. Another alternative is for the government to provide subsidies so that the tariff will not burden SMEs.

Chairman of the Indonesian Payment System Association (ASPI) Santoso said, to create an instant and reliable payment system service, there was a long process starting from building the infrastructure to unifying programming language standards and various technical processes. others that involve multiple parties. One of the aims of this tariff is to replace various investments and operational costs in QRIS development.

After having been free of fees since 2020, PJP needs income to be able to develop the QRIS feature further. One of the benefits offered from the imposition of the 0.3 percent MDR rate is that MSMEs can immediately enjoy the money that comes in on the same day, whereas previously it took D+1 or the next day.

“So, it is also not true that we do not support MSMEs. With same day settlement or money coming in on the same day, MSMEs have the additional cash flow needed for their business," said Santoso.

Economist and Director of the Center of Economics and Law Studies (Celios), Bhima Yudhistira, said that the 0.3 percent MDR (Merchant Discount Rate) imposition is not the right time.

"The timing of its implementation is not appropriate because the economic pressure on small business owners is still ongoing even though the pandemic has subsided," said Bhima.

He added, there is potential for business actors to increase the selling price to compensate for the new tariffs. In addition, business actors will also ask consumers to pay using other methods, such as cash. This made efforts by Bank Indonesia (BI) to push for a cashless society (cashless society) to go backwards.

He stated that in reality, a 0 percent MDR tariff still benefits the PSP and banks. This is because they also enjoy many benefits such as obtaining cheap funding and abundant data regarding customer transaction records.

As cheap as possible

Head of BI Payment System Policy Department Dicky Kartikoyono explained, in formulating payment system policies, his party wanted to expand financial inclusion that could be utilized at the lowest cost. The MDR rate for QRIS of 0.3 percent, continued Dicky, is still cheaper than similar transaction methods in other countries. In addition, the MDR QRIS rate is still lower than the MDR for transactions using cards, which range from 1-3 percent per transaction.

"So, it is not true that Bank Indonesia wants to hinder the digitization of the payment system by imposing tariffs," said Dicky.

He said that when QRIS was released in 2019, a rate of 0.7 percent per transaction had actually been applied. Because in 2020 there was a pandemic, QRIS's MDR became zero percent. After more than three years, starting July 1, 2023, the MDR QRIS rate has been reinstated to 0.3 percent per transaction.

They firmly deny that Bank Indonesia benefited from the tariff. "We did not receive anything from that tariff," they said.

KOMPAS/BENEDIKTUS KRISNA YOGATAMA

Development of QRIS May 2023. Source: Bank Indonesia

Citing data from Bank Indonesia, as of May 2023, the total number of QRIS users reached 35.80 million users, with a composition of 91.26 percent being MSMEs. The value of QRIS transactions in May 2023 reached Rp 18.08 trillion, with a transaction volume of 184.29 million transactions.

Minister of Cooperatives and SMEs, Teten Masduki, stated that he cannot yet assess the impact of the imposition of QRIS tariffs on MSMEs. This is because it only started to be implemented at the beginning of this month.

Teten said that his party always encourages MSMEs to enter the digital ecosystem, including utilizing digital payment systems such as QRIS. Payment using QRIS, he continued, provides ease of transaction.

Also read: QRIS Services are No Longer Free