BEYOND BELIEF: INSTITUTIONAL THEORY TOWARDS INDONESIA'S QRIS REGULATION

This study examines the development of Indonesia’s Quick Response Code Indonesian Standard (QRIS) as an institutional response to fragmentation in the digital payment ecosystem. While the rapid expansion of e-wallets and QR-based payments accelerated financial inclusion, it simultaneously produced inefficiencies through non-interoperable systems, duplicated infrastructures, and coordination frictions. Addressing this gap, the study adopts a qualitative research design grounded in institutional building theory, drawing on regulatory documents (PBI and PADG), industry data from ASPI, 293 QRIS-related news headlines extracted from 10,199 global news sources via LSEG (2019–2026), and a comprehensive body of academic literature. The findings show that QRIS represents a hybrid governance model in which Bank Indonesia centralises regulatory authority while maintaining decentralised participation among banks and fintech firms. Through processes of standardisation, coordination, and legitimation, QRIS successfully transformed a fragmented payment landscape into a unified national infrastructure. The analysis further reveals that QRIS has evolved beyond domestic efficiency to support cross-border integration and regional payment linkages, contributing to broader objectives of monetary sovereignty. This study argues that the effectiveness of digital payment systems depends not on technological innovation alone, but on deliberate institutional design. The Indonesian case provides important insights for emerging economies seeking to balance innovation, efficiency, and financial stability in an increasingly digitalised global economy.