HALOMONEY'S GUIDE TO CREDIT CARDS IN INDONESIA
EASY AND QUICK STEPS TO UNDERSTAND CREDIT CARD PRODUCTS IN INDONESIA
What is a credit card?
A credit card is a card-based payment tool, like a debit card. Credit cards are issued by providers, mostly banks, that are approved by Bank Indonesia. To apply for a credit card, you have to fill in registration form and provide required documents.
How does a credit card work?
Transactions billed to a credit card can be considered short-term loans granted by the bank. The bank or credit card provider will send you a credit card statement every month, and you have to pay the bill in installments or as a whole. Unless you pay the bill in full amount, banks will charge monthly interests for amounts left unpaid.
So, what is great about using a credit card?
Since you can pay in installments, credit cards make paying for large purchases easier as compared to paying for the full amount in cash. You can allocate separate payments to lessen the burden on your budget.
Having a credit card can also help improve your chances of getting a loan, such as a home loan or a car loan, if you apply for them in the future. If you’re in the habit of paying off your credit card bill on time, all your credit card activities will be recorded in Bank Indonesia Debtor Information System and you’ll be tagged as a responsible debtor. This would increase your chances of getting approved for a loan.
As a credit card holder, you can also enjoy seasonal promotions and discounts offered by merchants, such as boutiques and restaurants.
How to pay my credit card bill?
Your bank will send you your credit card bill every month. The statement will show how much you owe for a particular billing period. You can pay the amount partially or in full, with a minimum required payment of 10% of the total billed amount. If you don’t pay in full on or before your monthly due date, you’ll be charged an interest fee and late charge.
Credit card bill payments can be done through tellers, ATMs, Internet banking, and mobile banking facilities as provided by the bank.
How can we apply for a credit card?
To apply for a credit card, you first have to fill out an application form and meet the bank’s qualifications.These are some of the common requirements when you apply for a credit card:
- You have to be of legal age: minimum of 21 y.o for primary card, 17 y.o for a supplementary card, and maximum 65 y.o for both types of cards.
- You have to be a resident or citizen of Indonesia.
- You need to meet minimum income requirements if you’re a salaried employee, and present proof of income documents like your salary slip, salary statement, or tax payment receipt.
- You must bring a copy of your national ID and tax ID.
- For business owners and self-employed individuals and professionals, documents like a tax payment receipt and a copy of SIUP/ SITU/ License and Certificate of Business Establishment are required.
- If you’re applying for a second card, you must bring a copy of your previous credit card.