December 14, 2016 / 10:15 AM / 2 years ago

Indonesia cuts ceiling on credit card interest rates

JAKARTA, Dec 14 (Reuters) - Indonesia’s central bank has cut the maximum interest rate that banks can charge customers in a bid to get people to do more transactions electronically instead of using cash.

The maximum rate card providers can charge clients will be 2.25 percent a month starting from June 2017, from the current rate of 2.95 percent, according to a regulation published on Bank Indonesia’s (BI) website on Wednesday.

Out of Indonesia’s 250 million population, only 7-8 million people own credit cards, although some are using more than one. There are 23 credit card providers catering to the market, most of them are banks. (Reporting by Gayatri Suroyo; Editing by Richard Borsuk)

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