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ICBC Indonesia issues UnionPay credit cards
Private lender PT Bank ICBC Indonesia has issued a new credit card in collaboration with Chinaâs bank card organization UnionPay, targeting Indonesians who often travel to the worldâs second-largest economy
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rivate lender PT Bank ICBC Indonesia has issued a new credit card in collaboration with China's bank card organization UnionPay, targeting Indonesians who often travel to the world's second-largest economy.
The number of Indonesians traveling to China is estimated to reach 600,000 every year.
'It is hoped the new credit card will financially help our customers who travel to or live in China, such as tourists, business players as well as students,' ICBC Indonesia card center head Yensen Aliamin said during the credit card launch on Wednesday.
UnionPay cards can reportedly be used in more than 140 countries across the globe and are second to Visa in term of the value of transaction.
According to Yensen, ICBC Indonesia will be selective in issuing UnionPay credit cards and plans to issue only around 2,000 cards a year.
He said the lender was targeting to see credit card transaction growth at 30 percent by the end of 2014.
ICBC Indonesia is a relative newcomer to credit card products, launching its credit card program only in 2011 ' four years after its presence in the country began in 2007.
ICBC Indonesia had since 2011 issued around 10,000 cards to its 5,000 customers in the country.
Over 95 percent of cardholders were Indonesian citizens. Before collaborating with UnionPay, ICBC Indonesia has worked with US-based Visa Inc.
The Industrial and Commercial Bank of China (ICBC), which has a 97.83 percent share in ICBC Indonesia, has issued a total of 580 million cards worldwide, with 88 million being credit cards at the end of 2013.
It is the largest bank in the world with US$3.062 trillion in assets, according to Forbes magazine.
In addition, Yensen said around 25 to 30 percent of credit card transactions by ICBC Indonesia customers were made overseas. Roughly, around 80 to 90 percent of the transactions were retail.
According to him, one of the advantages of the UnionPay card was that it was more widely accepted by merchants in China.
According to an unaudited report submitted to Bank Indonesia, ICBC Indonesia's total outstanding loans reached Rp 20.81 trillion as of March 2014.
ICBC Indonesia's outstanding loans in the credit card segment are still below 10 percent. (dyl)
