Indonesian Label Credit Cards Suggested
TEMPO Interactive, Jakarta: Cahyana Ahmadjayadi, Director General of Telematics Application at the Information and Communication Department, has suggested the use of local label credit cards for reducing the high label fees.
The reason is for this Indonesia pays label fees to international credit card providers of no less than Rp9.4 trillion.
According to Cahyana, these payments are for using connection bandwidths and fees for Visa and Master Card labels.
However, he regretted this quite large sum of money going abroad as there are not yet any local label credit cards.
Therefore, in the Information and Electronic Transaction Draft Bill, private labels are regulated.
“It’s better to use credit cards with Indonesian labels,” he said, Monday (26/11) during the Information and Communication Department coordination meeting in Jakarta.
The government, according to Cahyana, is making efforts so that Bank Indonesia creates private label provisions.
It would be better that Indonesian label credit cards have international standards.
Under the new provisions, efforts are being made that the credit card transaction server will be located in Indonesia.
“So for every swipe, there’s no bandwidth going overseas. At the moment, our bandwidth goes out to Singapore.”
He then revealed that based on data from Bank Indonesia that as of February, the number of debit cards that have been issued by 89 banks total 31.96 million.
The transactions of debit cards amount to 158 million with a value of Rp214.97 trillion.
As regards credit cards, the total was 83 million, with transactions amounting to 19.84 million, worth Rp10.371 trillion.
According to data from the Indonesian Credit Card Association (AKKI), in the third quarter in 2007 8.7 million credit cards were owned by 4.5 million customers.
The use of maximum credit card transaction value was still low, between 24 and 35 percent.
Dian Yuliastuti
The reason is for this Indonesia pays label fees to international credit card providers of no less than Rp9.4 trillion.
According to Cahyana, these payments are for using connection bandwidths and fees for Visa and Master Card labels.
However, he regretted this quite large sum of money going abroad as there are not yet any local label credit cards.
Therefore, in the Information and Electronic Transaction Draft Bill, private labels are regulated.
“It’s better to use credit cards with Indonesian labels,” he said, Monday (26/11) during the Information and Communication Department coordination meeting in Jakarta.
The government, according to Cahyana, is making efforts so that Bank Indonesia creates private label provisions.
It would be better that Indonesian label credit cards have international standards.
Under the new provisions, efforts are being made that the credit card transaction server will be located in Indonesia.
“So for every swipe, there’s no bandwidth going overseas. At the moment, our bandwidth goes out to Singapore.”
He then revealed that based on data from Bank Indonesia that as of February, the number of debit cards that have been issued by 89 banks total 31.96 million.
The transactions of debit cards amount to 158 million with a value of Rp214.97 trillion.
As regards credit cards, the total was 83 million, with transactions amounting to 19.84 million, worth Rp10.371 trillion.
According to data from the Indonesian Credit Card Association (AKKI), in the third quarter in 2007 8.7 million credit cards were owned by 4.5 million customers.
The use of maximum credit card transaction value was still low, between 24 and 35 percent.
Dian Yuliastuti