There are more than 17.6 million credit cards in circulation in Indonesia. (ID Photo/Emral)
Central Bank Loosens Credit Card Rules
BY :NIDA SAHARA
APRIL 15, 2020
Jakarta. Bank Indonesia, the country's central bank, has relaxed rules for millions of credit cardholders in Indonesia in a move to prop up purchasing power amid the coronavirus pandemic.
The central bank has decided to cut the maximum interest rate on credit card by 25 basis points to 2 percent per month starting on May 1, Bank Indonesia Governor Perry Warjiyo said on Tuesday.
The minimum payment amount was also cut by half to 5 percent of the total bill, from the previous 10 percent. The new rule will be valid until the end of this year.
Bank Indonesia has also reduced late payment penalties to 1 percent of the total bill, or a maximum Rp 100,000. Previously, late payment incurred a 3 percent penalty up to Rp 150,000 per month.
"Bank Indonesia also supports the decision by credit card issuers to extend payment terms for customers affected by the Covid-19 pandemic. The mechanism is left to the discretion of each issuer. This will also apply from May 1 to Dec. 31," Perry said.
There are more than 17.6 million credit cards in circulation in Indonesia, accounting for around one in ten card-based payments in the archipelago, according to Bank Indonesia's latest data.
Every Indonesian can only hold two different credit cards.