INDONESIA - BANKING - Banks ‘held hostage’ by big depositors: Bank Indonesia

www.thejakartapost.com - Bank Indonesia (BI) has uncovered worrying evidence that the country’s banks are being held hostage by their big clients, preventing them from lowering their interest rates in line with the central bank’s low interest-rate policy.

BI Governor Darmin Nasution said that based on the central bank’s survey, most banks could not cut their interest rates to an affordable level for businesses as they had to spend huge amounts to keep their big depositors from going elsewhere.

Around 99 percent of the country’s banks offer special high-level interest rates or provide generous gifts to their big depositors, which then must be covered by proceeds from higher interest rates levied on businesses, including small-scale enterprises, according to Darmin. (source)

INDONESIA - REGULATIONS - Credit card interest rate and fee must be detailed: BI

JAKARTA: Bank Indonesia requires credit card providers to be transparent in setting interest rate and charging fee to customers, following complaints from cardholders.

The revised regulation on payment using card states that providers must give clear details on interest rate and fee charged to customers in credit card application.

“Credit card providers must give explanation on interest rate and fee that is easy to understand for their customers. They should give explanation using diagram if necessary,” said Bank Indonesia Director of Accounting and Payment System Ronald Waas. (source)

INDONESIA - REGULATIONS - BI Bans Credit Card Compound Interest Practice

JAKARTA (IFT) – Bank Indonesia (BI) will forbid banks to compound credit card interest rate through its revised Regulation (PBI) No 11/11/PBI/2009 concerning Medium of Exchange Using Cards (APMK). (source)