JAKARTA. BI (the Central Bank) confirmed to cut the capping of credit card interest rate from 2.95% per month or 35.4% per year to 2.25% per month or 26.95% per year. This policy is expected to recover the credit card business, which tends to have been stagnant. As information, as per October 2016 the total value of credit card transaction reached Rp 230.9 trillion, not much different compared with the last year. Meanwhile, the number of credit card only grew by 2.85% to 17.23 cards. Head of Monitoring and Payment System Policy of BI said that BI has socialized this policy to the banking sector. “The policy will be implemented in January 2017,” Eni said.
BI has asked banking sector to adopt with the policy in an immediate manner. BI also has asked the banks to arrange the funding structure. Director of Bank Central Asia (BCA) Santoso Liem confirmed to have received the notification related to this policy. According to Santoso, the cut in interest rate may reduce the incomes from credit card sector. In order to cover the income shortfall, BCA plans to reduce the some costs. “We will reduce operational costs and others,” Santoso told KONTAN, Sunday (18/12). BCA is targeting to increase the credit card growth and transaction volume by 6%-7% and 10% by the next year.
