Amex launches first credit card in RI
Amex launches first credit card in RI
JAKARTA (JP): American Express (Amex) launched its first
credit card on Monday amid signs of recovery in the country's
economy.
The vice president and country manager of Travel Related
Services (TRS) in Indonesia, Atul Mathur, said the Account Linked
Blue Credit Card offered holders a credit limit equivalent to the
amount of their deposits placed in Amex savings accounts.
"The deposit funds will give cardholders an interest rate of
13 percent per year," Mathur said.
He said the credit card would target a new, broader consumer
base compared to Amex's charge card.
"This consumer segment is new to Amex Indonesia," he said.
Amex formerly operated only its charge card business in the
country, with cardholders exclusively from the upper market
segment.
Charge cards require the holder to make full payments upon
billing at the end of the month or incur penalties. The credit
card allows the holder to make incremental payments at the end of
the following month and bear the incurring interest rate after
the month of purchase.
Mathur said he was confident about the country's economic
recovery and its future business prospects.
"Our confidence is reflected in our launching of the new
product."
He noted early indications of political stability and economic
growth, which he said were crucial to consumer spending.
"The card business depends on political stability and economic
growth. If people are more confident about the future, they will
spend more."
Mathur said consumer spending of Amex charge cardholders in
the country consistently increased each month over the last two
months to three months.
"Looking at the current growth, we predict that this quarter
would make 20 percent growth compared to the last quarter," he
said.
Amex, which began operations in Indonesia in 1976, is a global
diversified travel and financial services company founded in 1850
in the United States. Its services include charge and credit
cards and traveler's checks. (udi)