JAKARTA. Bank Indonesia (BI), starting July 2021, would lower the maximum limit of credit card interest rate from 2% to 1.75% per month.
BI Governor, Perry Warijyo, hoped that reducing the rate would quickly induce an increment in the public’s consumption. “This policy also aims to promote the public’s non-cash transaction,” Warijyo added during the Governor Board Meeting, Tuesday (25/5). However, the minimum payment would still be 5% of the total bills, with the late payment penalty of 1%.
According to Warijyo, Indonesia’s credit card interest rate is the highest globally, reaching 26.6% per year. This rate drives BI to ask business owners to reduce it down amidst the weakened economy during this pandemic. (AM/ZH)