REPUBLIKA.CO.ID, JAKARTA - The use of credit card in Indonesia is expected to decrease due to the  effectiveness of Bank Indonesia's regulation to cut credit card growth this year. Survey of MasterCard shows the use of credit cards in Indonesia has decreased by 6.5 points from 81 points in the first half of this year. However, some banks are still set high targets. 

"It is different with the use of credit cards in other countries, such as Taiwan and South Korea which have been growing rapidly 19.2 points and 14.8 points respectively," Analyst of MasterCard said on Sunday.

However, the decline is not as big as in Bangladesh where the use of credit cards fell from 39.5 points to 22.2 points due to its political situation. The same thing happens in Vietnam, which dropped 16.1 points.

In its policy, Indonesian Central Bank set interest rates and set minimum limit credit card in early 2013. BI also set terms of the provision of credit card facilities which based on revenue per customer. The steps were taken to reduce the use of credit card in Indonesia where the use shows increasing and potentially to lead to economic turmoil.

However, some banks are still optimistic to Indonesian economy and people's purchasing power. Director of Retail Banking at Permata Bank, Lauren Sulistiawati said the company had issued credit cards 600 thousand cards this year with the volume of 650 billion IDR per month.

"The growth of new credit cards at Permata Bank is 15-20 percent annually," Sulistiawati said. About 70 percent of total credit card transactions at Permata Bank is everyday shopping and food. 

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