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redit card holders have been given more time to get to grips with the six-digit personal identification number (PIN) for credit card transactions, as Bank Indonesia (BI), the country'€™s central bank, has decided to delay the application of the PIN requirement for credit card transactions.

The application of the six-digit PIN for credit card transactions, which was to take effect on Jan.1, 2015, has been delayed until 2020.

BI policy and payment system control department head Erni V said that the decision was intended to provide more time for issuers and acquirers to educate public and traders or merchants about the utilization of the six-digit PIN.

With the delay, it is expected that the public will understand better the methods of using the PIN as a means of authentication and verification of credit card-based transactions.

Meanwhile, the Indonesian Credit Card Association'€™s (AKKI) Steve Marta hailed the postponement, saying that it allowed more time to make necessary preparations.

'€œWe will be more ready if we can prepare well,'€ he told detikfinance over the weekend.

Efforts have been made by AKKI to educate the public regarding the implementation of the PIN, but an extension of at least six months was needed to ensure the transition would run smoothly, said Steve.

Issuers are ready to oblige credit card holders to use the PIN system but more time is needed because '€œthe public'€™s awareness of the issue remains low,'€ he added.

The PIN requirement for credit card transactions is stipulated by a 2012 BI regulation.

The central bank claims it will increase transaction security.

According to the regulation, all transactions must be validated by the use of a PIN as of Jan. 1, 2015.

Steve said earlier that in terms of the technology, banks were ready to realize the PIN requirement. '€œHowever, not all existing credit-card holders have activated their PINs and that has raised concerns about preparedness [for PIN implementation] on the whole,'€ he said.

Despite the original two-year transition period, data from AKKI show around 70 percent of credit card holders still have not activated their PINs.

According to the data, as of the end of September this year, there were 8 to 9 million credit card holders and 15.8 million credit cards. The number of card issuers stands at 23, consisting of 22 banks and one non-banking firm.

The number of credit cards increased to 15.9 million at the end of October, rising from 15.09 million in 2013 and 14.81 million in 2012, according to the organization'€™s latest data.

Meanwhile, the total value of transactions reached Rp 204.40 trillion (US$16.52 billion) at the end of October 2014, as compared with Rp 219.02 trillion in 2013 and Rp 197.55 trillion in 2012. (JP)