BNI Optimistic on Credit Card Growth
Bank Negara Indonesia, the country’s fourth-largest lender by assets, is upbeat that its credit card transaction value will grow 40 percent in 2012 as it intensifies cooperation with merchants and other companies.
Dodit Probojakti, BNI’s general manager for credit card business, said the bank was aiming to book a total transaction value of Rp 18.5 trillion ($2 billion) for its customers’ credit cards this year.
In the first six months of the year, the value of such transactions was Rp 8.4 trillion, up 38 percent from the same period a year ago, he said.
The figure normally strengthens in the second half because of Idul Fitri, Christmas and New Year’s, which spur spending, Dodit said.
In the six months ended in June, BNI recorded 1.8 million outstanding credit cards, a 7 percent increase during the same period in 2011.
Dodit said BNI was trying to boost transactions through cooperation with popular brands such as flag carrier Garuda Indonesia, South Korean retailer Lotte Mart and English football club Chelsea.
Despite high growth for BNI’s credit card business, new standards for credit card applicants set to take effect on Jan. 1, 2013, will present new challenges, Dodit said.
Under a regulation issued by the central bank in June, credit card applicants who earn less than Rp 10 million a month will have to apply for a special assessment from banks before they can take out credit cards from more than two issuers.
People earning less than Rp 3 million a month will be barred from getting a card. Banks must cancel any outstanding cards belonging to these people as of Jan. 1 next year.
The regulation also allows anyone aged 17 or older to apply for a secondary credit card if someone who is at least 21 years old assumes legal responsibility.
Banks have tended to cap lending at three times the borrower’s total monthly income, although self-regulation has meant this is not always the case.