Indonesian Banks Adapt to Extended Credit Card Relief Measures

Enhanced Risk Management Strategies

In response to Bank Indonesia's extension of credit card relief measures until June 30, 2026, major Indonesian banks are implementing robust risk management strategies. The policy extension includes maintaining the minimum payment requirement at 5% of total outstanding balances and capping late fees at a maximum of 1% of the total bill or Rp100,000.

Permata Bank's Strategic Response

Permata Bank's CEO, Meliza M. Rusli, stated that the extended relief policy continues to effectively maintain low non-performing loan (NPL) rates among credit card holders. The bank's target market primarily consists of middle-to-upper income segments who typically pay their credit card bills in full and on time. However, Meliza noted that while the reduced minimum payment requirement benefits some customers, the bank's overall NPL remains under control.

Regarding payment services, Permata Bank observed a 15% average increase in transaction volume following the extension of the low-cost National Clearing System (SKNBI) tariff. Meliza emphasized that while the low tariff has boosted transactions, future growth will depend on a combination of factors including cost, speed, and customer preference for modern transfer services. The emergence of alternative payment systems like BI-FAST and RTGS has increased competition for SKNBI, despite its maintained low tariff.

BCA's Proactive Measures

BCA is taking a proactive approach by strengthening its credit scoring processes and conducting regular monitoring to maintain portfolio quality. Hera F. Haryn, EVP of Corporate Communication & Social Responsibility at BCA, stated that the bank is committed to providing solutions to customers to mitigate potential risks and prevent NPL increases while maintaining service quality. The bank views the extended minimum payment policy as providing flexibility for customers in managing their cash flow.

Policy Background and Implications

The credit card relief policy, initially set to expire on December 31, 2025, has been extended for the second time until June 30, 2026. Bank Indonesia Governor Perry Warjiyo announced this continuation during the June 2025 monthly Monetary Policy Meeting. The policy includes two main components: the minimum payment requirement of 5% and the capped late fees structure. Additionally, the SKNBI tariff policy has been extended, maintaining low transaction costs for consumers.

Market Impact and Future Outlook

While the relief measures provide short-term financial relief to consumers, banks are adapting their strategies to manage potential long-term implications. The combination of enhanced credit monitoring, digital innovation, and customer-centric solutions will be crucial in maintaining portfolio quality. As the banking sector continues to navigate these regulatory measures, the balance between supporting consumer welfare and managing financial risk will remain a key focus.