Jakarta, 3 December 2025 — QRIS (Quick Response Code Indonesian Standard) has now become the largest non-cash payment system in Indonesia. It has reached 58 million users and 41 million merchants, 93.16 percent of whom are MSMEs. According to Bank Indonesia data as of August 2025, QRIS recorded 6.05 billion transactions in the first half of 2025, with a total value of Rp579 trillion. Beyond domestic use, QRIS is already enabled for cross-border transactions in Thailand, Malaysia, the Philippines, Singapore, Vietnam, Laos, Brunei, Japan, and South Korea.
Prasasti Center for Policy Studies (Prasasti) views the strengthening role of QRIS as a non-cash payment instrument as a key indicator of the rapid digitalization progress over the past decade. Digitalization is emerging as a new leading sector in Indonesia’s economy, with its success most clearly reflected in the growing use of QRIS in daily transactions.
“QRIS adoption has surged over the past five years, with transaction value nearly tripling every year. This development helps MSMEs manage their finances more effectively, reduces security risks, and provides consumers with convenient non-cash payment options,” said Prasasti’s Research Director, Gundy Cahyadi.
Prasasti notes that the success of QRIS reflects how digitalization is reinforcing the foundations of Indonesia’s economy. Prasasti’s research shows that digitalization can make investment nearly twice as effective in generating economic growth.
Earlier research by Prasasti showed that the ICOR (Incremental Capital Output Ratio) of digitally enabled segments stands at just 4.3—lower than the national ICOR of 6.6. ICOR measures how much investment is needed to generate economic growth (GDP). The lower the ICOR, the more efficient the investment; the higher the ICOR, the more investment is required to lift economic output.
Prasasti emphasizes that digitalization is not merely about e-commerce or social media—it is a cross-sector economic enabler that must be evenly distributed across regions. The government has identified MSME digitalization as a priority agenda, given the sector’s significant contribution to the national economy. However, the digital intensity of Indonesian MSMEs remains low, posing a major challenge for improving productivity and competitiveness.
The “hollow middle” phenomenon—where the number of medium-sized firms is limited compared to the dominance of micro and large enterprises—stands out as a structural barrier identified by Prasasti. Digitalization is seen as a catalyst for helping MSMEs scale up through access to technology, broader markets, and digital financing.
“QRIS is one of the key entry points in this process. Beyond strengthening digital literacy and non-cash payment habits, QRIS transaction records can serve as alternative credit scoring data to expand MSME access to financing, which formal financial institutions often struggle to provide,” Gundy explained.
He added that the government also has the opportunity to integrate QRIS data with digital tax systems to enhance transparency and tax compliance.
Beyond MSMEs, Prasasti identifies several high-impact sectors with low digitalization levels that could serve as quick wins for accelerating economic transformation. One such sector is public administration. Developing integrated data platforms and digitizing public service workflows can reduce bureaucratic bottlenecks, speed up service delivery, and improve Indonesia’s ease of doing business ranking.
“Digitalization is more than technological advancement. It is a critical foundation for boosting productivity, strengthening MSME competitiveness, and establishing a key pillar for Indonesia’s long-term economic transformation,” Gundy concluded.