Bank BNI launches credit card service

Bank BNI launches credit card service

JAKARTA (JP): Publicly listed Bank Negara Indonesia (Bank BNI)
launched a MasterCard credit card yesterday, the first of its
kind by an Indonesian state-owned bank, in cooperation with
MasterCard International.

BNI's president Widigdo Sukarman said the credit card would be
fully introduced to the public in December after a trial run this
month and November.

"Before introducing the card to the public in December, BNI
will initially target its own employees and business partners,"
he said.

He said the launch of the credit card was part of the bank's
commitment to broadening its service to retail customers.

"People asked us during the initial public offering last year
if we would launch a credit card. Now ... we have answered," he
said after launching the card yesterday.

Widigdo declined to disclose the fee for the bank's credit
card but said the card would be much cheaper than any other
credit card available in the market here.

BNI has been aggressive in diversifying its services to retail
customers.

The bank launched a rupiah traveler's check last June which
could also be used as a voucher.

BNI traveler's checks are available in nine denominations
ranging from Rp 50,000 to Rp 25 million.

In July the bank launched a debit card in cooperation with
MasterCard International.

Assistance

Replying to questions from reporters about BNI's role in
helping problem banks, Widigdo said BNI would only provide
technical or management assistance and not financial aid to
ailing banks.

"The role of state banks like BNI in helping ailing banks is
to provide management assistance, not financial assistance," he
said.

Early this week, Bank Indonesia asked two state banks and
eight top private banks, including Bank Central Asia, Bank Niaga,
Bank Nusa, Bank Danamon, Bank Lippo, Bank Umum Nasional, Bank
Bali and Bank Internasional Indonesia, to help the ailing banking
industry.

Economists believed the move was taken in response to great
concerns by the International Monetary Fund (IMF) over problem
banks in the country.

An IMF team has been here since early this week to negotiate
an aid package for Indonesia to deal with its financial
crisis.

The rupiah has lost more than 35 percent of its value against
the U.S. dollar since early July.

Widigdo said the depreciation of the rupiah was caused mainly
by demand from local companies who wanted to hedge their foreign
debt. (aly)