TEMPO.CO, Jakarta - Bank Indonesia (BI) issued a policy on credit card payment relaxation. Starting May 1, 2020, credit cardholders are eligible to, among others, lower interest rates ceiling and lower minimum payment.
BI Governor Perry Warjiyo said that Indonesia's credit card interest rates are the highest in the world; averaging at 26.6 percent a year.
That was one of the reasons that the central bank urged industry players to cut rates, as the economy is already weakened by the novel coronavirus pandemic, Perry said here on Wednesday, April 22.
Regulators and industry players agreed to cut interest rates starting next month, along with the minimum payment and lateness fees, as well as lower lateness fees, and longer payments' due.
The maximum interest rate is lowered by 25bps to 2 percent per month, and the minimum payment is lowered from 10 percent to 5 percent. Lateness fee is lowered from 3 percent of a maximum of Rp150,000 to 1 percent or a maximum of Rp100,000.
As for payments' due, the extended period of time is decided by respective banks or credit card issuers.
The policies are effective from May 1 to December 31, 2020.