Visa introduces its first debit card in Indonesia

JAKARTA (JP): Visa International introduced its first Visa Electron debit card in Indonesia on Thursday in cooperation with state Bank Negara Indonesia (BNI).

Executive Vice President of Visa International for Southeast Asia James G. Murray said that Indonesia, with its about 60 million bank depositors, is a promising market for debit cards.

Murray said that prospects in Indonesia were very encouraging because the country's political and social uncertainty would prompt more people to carry out transactions with "plastic money" rather than with cash.

"More people prefer to have more security in settling their business transactions," he said at the launch of the card.

Visa International's debit card, which is like a credit card, will enable holders who have bank accounts to settle transactions without cash.

In the first stage, the membership would be limited to BNI employees and selected customers, he said.

"But the card will be made available to the public at the beginning of February next year," he said.

Murray said that Visa International expected to issue 50 million Visa Electron debit cards in the Asia-Pacific region in the next five years.

He hoped 12.5 million cards would be issued in Indonesia during this five-year period.

After Indonesia, Visa International will introduce the debit card to Malaysia, Thailand and India in the coming weeks as part of its efforts to boost its presence in the region.

"We have launched similar products in Japan and they were warmly welcomed there," he said.

Visa International has issued 63 million Visa Electron cards in 60 countries worldwide, generating a total transaction value of US$120 billion a year.

Bank BNI retail director Hasan Soeftendy, who was present at the launch of the product, said that Visa Electron was expected to increase the bank's fee-based income in the coming years. (aly)