Indonesia’s 2015 Credit Card Rule Means Almost Half a Million Fewer in Circulation

(Photo courtesy of Citibank)

By : Jakarta Globe | on 1:17 PM October 02, 2014
Category : Business, Corporate News, Featured, Banking/Finance

Jakarta. The Indonesian government’s policy to limit credit card ownership, slated to take into effect on Jan. 1, could lead to a reduction in the number of credit cards in circulation by 450,000 this year.

Indonesian Credit Card Association (AKKI) general manager Steve Marta said that its data showed that 3 million to 4 million credit card customers earn between Rp 3 million and Rp 10 million ($250 and $833) per month and around 450,000 of them have credit cards from more than two issuers.

“Based on our data, users who earn 3 million to 10 million rupiah have more than two cards. We have sent them a letter to ask them to close them. So, there’s a possibility the number will shrink by around 450,000 cards,” said Steve in Jakarta on Wednesday.

Steve said the number of credit card users in the country as of September reached 8 million customers with 15.8 million cards. He said that customers with incomes of around Rp 3 million to Rp 10 million and have more than two credit cards will be forced to choose which credit card they wish to keep.

Bank Indonesia governor Ronald Waas said a central bank regulation issued in 2012 stated that as of next year all credit card issuers must limit the number of credit cards issued to their customers and that the credit cards must also use a six-digit personal identification number.

Ronald said that growth in credit card issuance is expected at around 5 percent for both this year and next year, down from 10 percent to 11 percent in 2013.

Despite the declining growth in credit cards, transactions are expected to remain stable at around an increase of 15 percent this year.

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