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Bank Indonesia extends eased credit card rules to June 2022
The central bank has again extended its rules on credit card debt to support household spending and thereby the economic recovery.
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Bank Indonesia Governor Perry Warjiyo speaks to reporters during a virtual press conference on Jan. 21, 2021. (Courtesy of Bank Indonesia/-)
B
ank Indonesia (BI) has extended its relaxed repayment terms for credit card debt to the end of the second quarter next year to support economic recovery efforts.
Under the relaxed rules, minimum payment has been cut from 10 percent to 5 percent of the outstanding credit balance. Meanwhile, the penalty for late payment has been reduced from 3 percent of the outstanding balance capped at Rp 150,000 (US$11) to 1 percent with a Rp 100,000 cap.
“[We are] extending the credit card policy until June 30, 2022,” BI Governor Perry Warjiyo said in a statement dated Oct. 19.
Read also: BI holds policy rate, expects muted inflation
The relaxed credit card debt terms were originally slated to end in December 2021 for the reduced minimum payment and June 2021 for the reduced penalty.
Introduced in May 2020 and extended for the first time later that year, the rule is in line with the central bank’s eased monetary and loan provisioning policies, aimed to increase the disbursement of bank loans.
The BI 7-Day Reverse Repo Rate since February has remained at 3.5 percent, the lowest benchmark rate in the country’s history, in a move deemed important to enhance economic recovery.
