“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013.

They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."
"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: The Humanization of God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,..... etc.)
(Subjects: Who/What is Kryon ?, Egypt Uprising, Iran/Persia Uprising, Peace in Middle East without Israel actively involved, Muhammad, "Conceptual" Youth Revolution, "Conceptual" Managed Business, Internet, Social Media, News Media, Google, Bankers, Global Unity,..... etc.)

Saturday, February 07, 2009

Hefty growth in credit card transactions

The Jakarta Post, JAKARTA | Sat, 02/07/2009 10:27 AM  

Credit card transactions grow by around 45 percent in 2008 from a year earlier, although the growth rate could slow down this year as slower economic growth weakens purchasing power, according to the central bank. 

Transactions using the plastic cards amounted to Rp 107.3 trillion (around US$9.8 billion) last year, jumping from Rp 72.6 trillion a year earlier, SWD Murniastuti, Bank Indonesia’s director of accounting and payment systems, told reporters on Friday.

“The transactions came from around 11.5 million cards circulating by the end of last year,” Murniastuti said during the central bank’s launch of the nationally standarized chip-based debit cards.

The Indonesian Credit Card Issuer Association (AKKI) has said that on average a credit card is being used to pay transactions of up to Rp 1.5 million per month, while stressing that in Indonesia, a credit card holder usually holds and actively uses another card.

Turning to this year, Murniastuti said the industry would face a tough challenge amid the current adverse economic conditions. In particular, she emphasized the need for the sector to manage a potentially higher rate of non-performing loans (NPLs) from  credit cards.

“The jump in credit card transaction is positive. But the banks need to anticipate the threat of NPLs, which currently stands at 10.92 percent,” she said.

The figure is actually on a declining trend, with the industry posting 12 percent of NPLs at the start of last year, but the slower economic expansion this year poses a significant threat to consumers’ purchasing power, she said.

For this year, Finance Minister Sri Mulyani Indrawati said Thursday that government anticipated a likely growth rate of 4.7 percent, within the 4.5 to 5.5 percent range forecast estimated earlier.

The economy is estimated to have grown by 6.2 percent during 2008.

“The weakening purchasing power would eventually lead to an increase in unpaid loans. So the banking sector must be able to control troubled loans by improving its claim system,” she said, without elaborating.

Also on Friday, the central bank launched the chip-based debit card aimed at improving the protection of bank clients.

“My estimate is that one card costs $2, with bank debit card holders amounting to around 40 million currently,” BI deputy governor Budi Rochadi said, alluding to the level of investment needed by the banks to implement the introduction of more secure and efficient  debit cards.

“BI only acts as the supervisor. With regard to preparation and speed of implementation (of this program), we’ll leave it to the industry,” Budi said.

At present 19 banks have committed to join this program, with more expected to follow suit.

Bank Mandiri, the country’s largest lender, said it would spend $33 million to $35 million to implement the program.

“We will use the investment for card production, installing readers and other supporting infrastructure,” Mandiri director of technology and operations Sasmita said, adding that the bank served more than 7 million debit card holders. (hdt)

Related Article:

BI Warns of Rise In Defaults on Credit Card Debt

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