Reporting Obligation will Affect Credit Card Users, YLKI Says

TEMPO.CO, Jakarta - Sudaryatmo, Chief of Daily Administrators of the Indonesian Consumers Organization (YLKI) said that mandatory reporting obligation of credit card transaction data by banks will have a negative effect on banking institutions. Recently, the government plans to mandate banks to report all of its credit card transaction data to the Directorate General of Tax.

Sudaryatmo said that the policy will reduce the number of credit card users. "If customers want their transactions to be untraced, then don't use credit cards," Sudaryatmo said on Monday, April 4, 2016.

Sudaryatmo explained that potential customers will become reluctant to apply for a credit card because the bank will have to report the customers transactions to the Directorate General. "Even customers that have already owned credit cards could [decide to close them]," Sudaryatmo stated.

Nevertheless, Sudaryatmo asserted that the reporting obligation will not violate laws on customer data privacy. Sudaryatmo explained that the reporting obligation was initiated because the Directorate General of Tax wanted to analyze credit card owners' spending pattern with their respective income.

Minister of Finance Regulation No. 39/2016 mandates all banking institutions and credit card companies to report credit card transaction data to the Directorate General of Tax on a monthly basis.

ANGELINA ANJAR SAWITRI