Bank Indonesia has begun studying options to prevent lenders from offering credit lines. Bank offer is for only the most eligible to get credit cards, those who have the ability to pay.
Among the ideas floated were setting maximum credit limits based on a client’s income and raising the minimum age for card holders. Central bank may will upsize the minimum age for credit-card holders, which is 21, needs to be reviewed as well.
This is the latest move on the part of the central bank to protect consumers after politician Irzen Octa died on March 29 after meeting debt collectors working for Citibank Indonesia. Counting a massive amount of interest, Irzen had owed the lender over Rp 100 million ($11,500) in credit-card debt. Police have named five suspects over the death.
Central bank data show outstanding credit-card debt of Rp 33.2 trillion as of February, up from Rp 30.9 trillion in the year-earlier period. The non-performing loan ratio for credit cards had declined to 4.6 percent, or Rp 1.52 trillion, over that period. The banking sector’s net interest income was not available. Citibank Indonesia has declined to disclose its NPL ratio for credit cards.
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