Bank Indonesia Extends Credit Card Relaxation Policy to Boost Digital Payment System

Jokowi Wants Government Credit Card Independent from Visa and Mastercard (photo: - Unsplash)

In a bid to improve service quality, transaction efficiency, and expand the digital financial ecosystem, Bank Indonesia (BI) has announced the extension of its relaxation policy for credit card users. This move underscores BI’s commitment to fostering a conducive environment for the growth of the digital economy and promoting the adoption of digital payment system.

In an official press release, BI emphasized the importance of the extended credit card policy, stating that it aims to enhance the overall digital payment system experience and facilitate the expansion of the digital financial ecosystem.

The policy extension, which will be in effect until December 31, 2023, provides credit card users with continued benefits and greater flexibility.

The extended policy encompasses two key aspects related to credit card usage. Firstly, it maintains the minimum payment requirement, stipulating that credit card holders must pay a minimum of 5 percent of their total bill. This provision offers users the flexibility to manage their monthly payments according to their financial capabilities.

Secondly, the maximum penalty for late payment has been retained, ensuring that it remains at 1 percent of the total bill, with a maximum limit of Rp100,000. By imposing a reasonable penalty, BI aims to encourage responsible credit card usage while promoting timely payments.

This extension follows a similar move made by BI at the end of the previous year, signifying the central bank’s commitment to supporting the credit card industry and creating a healthy financial environment.

The continuous relaxation policy demonstrates BI’s dedication to ensuring the stability and growth of the digital payment sector.

Furthermore, BI reported significant growth in transactions made using payment instruments such as debit cards and credit cards, with an impressive 8.31 percent year-on-year (yoy) increase recorded in May 2023. This upward trend showcases the growing preference for digital payment methods among consumers, highlighting the relevance and importance of initiatives aimed at enhancing the digital payment ecosystem.

The credit card relaxation policy implemented by BI has received positive feedback from various stakeholders. Bank Mandiri, for instance, expressed its confidence in the positive impact of this policy on the credit card business in 2023.

The inclusive nature of the policy ensures that all Mandiri credit cardholders can benefit from these relaxations, promoting equal access to financial services and opportunities.

By extending the credit card relaxation policy, BI aims to create an environment that facilitates the growth of the digital economy and enhances the convenience and efficiency of digital transactions for individuals and businesses alike. This move aligns with BI’s strategic vision to promote digitalization and strengthen the digital financial ecosystem, ultimately contributing to the overall development and advancement of the Indonesian economy.