The Bank of Indonesia is setting the stage to phase out Visa and Mastercard, in favor of a new domestic payment system it is introducing, according to a Monday report by Antara news agency, citing the regulator

Indonesian President Joko Widodo had urged regional authorities to gradually move away from foreign payment systems, and toward using payment cards issued by local banks last week. He cited the risks to Indonesia from geopolitical disruptions, noting the imposition of sanctions levied against Russia’s financial sector by the US, EU, G7 nations, and their allies, in response to the conflict in Ukraine.

He said, “Be very careful. We must remember the sanctions imposed by the US on Russia. Visa and Mastercard could be a problem.”

Erwin Haryono, the central bank’s spokesperson, said talks were ongoing between the regulator and local businesses, “and the progress is about 90%.” He highlighted the fact domestic cards will have lower fees, and thus are inherently attractive to businesses. Also, he noted, “offshore settlements and dependence on foreign payment networks such as US Visa or Mastercard will no longer be necessary.”

Dodit Proboyakti, a board member of the Indonesian Credit Cards Association (AKKI), said in an interview with RIA Novosti, that Indonesia was drawing on the experiences of Russia and its Mir payment system as it looks to promote the new domestic financial system.

According to AKKI executive director Steve Marta, Indonesia’s interbank system, GPN, presently only supports local debit cards, and will require some new adjustments in order to be able to serve credit cards and international transactions.

In 2014, after being targeted with Western sanctions over the reunification with Crimea, Russia introduced its own national card system, Mir, and created the domestic National Payment Card System (NSPK), which could easily move in to handle all Visa and Mastercard transactions, in the event the US based companies ever withdrew from the nation.