Card issuing banks in Indonesia have expressed
their discontent with the Central Bank’s regulation, which aims to
cap overdue payments fees for credit cards, local media
reports.
The Central Bankof Indonesia recently
implemented a change to an existing law that affects credit card
ownership (Bank Indonesia Regulation No. 14/2/PBI/2012).
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The new directive within that law now limits
the fees to be levied for late payments credit cards to 3% of the
total amount – which cannot exceed INR150,000, local media outlet
reports.
Bank issuers expect to lose revenue due to the
new regulations. Sigit Pramono, chairman of the National
Banks Association (Perbanas) told Tempo, a Jakarta-based
publication, that overdue fees are one of the banks’ largest
sources of income.
Dessy Masri, card business executive
vice-president at Bank Danamon told Tempo that the regulation will
affect credit card marketing activities implemented by
Danamon.
Masri said: “It may be influential because in business management,
you need to have a balance between revenues and costs.”
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By GlobalDataIn December 2011, there were 14.78m credit
cards in circulating, according to the from Bank Indonesia.
