Bank Indonesia (BI) is preparing to increase credit card minimum payments to 5%. Auditors estimate a 10% increase in credit card transactions in the coming year as enterprises extend credit to the Indonesian middle class which relies on QR payments. To extend credit markets to the expanding Indonesian middle class cards will be issued for smartphone use.
While BI has previously enacted policies to encourage international transactions via QR codes, domestic QR transactions have recently been the subject of reform. Effective July 1st this year, BI applies an administration fee to all QR transactions of up to 0.7% depending on the merchant and transaction amount. The fee aims to encourage digital payment efficiency and safety. Additionally, the fee may level the playing field for digital credit cards, as now both forms of payment require additional costs.
Moreover, BI plans to leverage artificial intelligence to conduct identity checks and confirm cardholders’ credit credentials to prevent fraudulent transactions. Overall, these changes in digital payment policies could promote a more secure and efficient payment ecosystem in Indonesia, facilitating growth in credit card usage and attracting foreign investment.
