Financial Cards in Indonesia
Euromonitor International's Financial Cards in Indonesia report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
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Tables: 95 | Publication date: Mar 2008
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Financial cards in circulation; Transactions
Executive summary
Better penetration of debit cards thanks to the efforts of issuers and operators
With ongoing partnerships between local bank issuers and international operators, overall penetration of financial cards in Indonesia, specifically in urban zones, continued to progress positively. Visa Electron, in particular, posted rapid volume growth in the number of debit cards issued in 2006-2007, as issuing local bank Mandiri, attached the operator’s logo to all its existing and new ATM/debit cards, distributing them to 4 million account holders nationwide. Other local banks, such as Bank Mega also launched Visa Electron debit cards in the latter half of the review period. By 2007, almost all ATM cards issued by local banks in Indonesia also had a dual debit function.
Credit cards lead the market, backed by robust marketing and new launches
Credit cards continued to dominate the overall financial cards industry in Indonesia as leading local banks vied to capture higher volume shares in number of credit cards issued. Robust promotional and marketing activities included free annual fees, 0% interest rates, cash rebates, 10-50% discounts in dining and retailers’ outlets, and free supplementary cards. New product launches also continued to highlight the credit card business. Bank Mandiri launched a new co-branding credit card partnering the nation’s number one chained hotel management group Accor in early 2007, while other local banks, such as BCA and Bank Mega, introduced their new Platinum Visa credit cards, catering to wealthy individual clients.
Trial launches of pre-paid cards in support of BI’s “LCS” campaign
In support of the Indonesia’s central bank, Bank Indonesia’s aim towards a Less Cash Society (LCS), several local banks initiated trial launches of pre-paid cards as a means of replacing the use of cash in micro-transactions. In 2006, regional government bank DKI announced a plan to test-launch Jakcard, an ID smart card that contained cash withdrawal and pre-paid function features. Jakcard was initially launched for the capital city’s 150,000 civil servants and public school teachers. Similarly, in early 2007, BCA launched the country’s first ever contactless pre-paid BCA Flazz card. However, merchant acceptance of the latter remained restricted to office premises owned and operated by the Wisma BCA bank.
BCA and Bank Mandiri at the forefront, thanks to large accountholder base
The country’s two largest and most popular leading banks continued to be at the forefront of the financial cards industry in Indonesia in 2007 thanks to their well-established and solid network of branches, ATM machines and POS terminals nationwide. In 2007, BCA continued to lead in the acquiring business of debit and credit cards thanks to its extensive network of EDC terminals particularly in urban centres, while Bank Mandiri recorded the fastest growth in number of debit and credit cards issued due to the bank’s robust marketing activities and strategic new product launches.
Chip smart cards expected to emerge more significantly
With the BI’s deadline for chip-based credit cards set by December 2009, chip smart cards will consequently show greater visibility in the forecast period as local issuers roll out the migration of their magnetic striped credit cards to chip cards in the first half of the forecast period. Local acquirers and operators are also likely to upgrade their EDC terminals to accept chip-based debit and credit cards, in compliance with international EMV standards. Overall demand for smart cards will therefore be robustly maintained through growing consumer awareness and BI’s continued push towards full implementation of chip technology.
Table of contents
FINANCIAL CARDS IN INDONESIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Better penetration of debit cards thanks to the efforts of issuers and operators
Credit cards lead the market, backed by robust marketing and new launches
Trial launches of pre-paid cards in support of BI’s “LCS” campaign
BCA and Bank Mandiri at the forefront, thanks to large accountholder base
Chip smart cards expected to emerge more significantly
KEY TRENDS AND DEVELOPMENTS
Standardisation to chip cards still pending
BI pushes for e-wallets as the solution towards a cashless society
Expansion of malls, boosts consumer expenditure
Interest in credit cards prevails thanks to rewards and discounts
Consumer credit and lending
Issuer Fraud
Acquirer fraud
E-commerce
M-commerce
ATM and POS terminals
Cash Withdrawal vs. Card purchase
Governmental regulation and legislation
MARKET INDICATORS
Table 1 Number of POS Terminals 2004-2007
Table 2 Number of ATMs 2004-2007
Table 3 Disposable Income 2002-2007
Table 4 Consumer Credit 2002-2007
Table 5 Value Lost to Fraud 2002-2007
MARKET DATA
Table 6 Financial Cards: Transactions 2002-2007
Table 7 Financial Cards: Value 2002-2007
Table 8 Financial Cards: Number of Cards in Circulation 2002-2007
Table 9 Financial Cards: Number of Accounts 2002-2007
Table 10 Domestic versus Foreign Spend 2007
Table 11 Card Expenditure by Sector 2007
Table 12 Card Expenditure by Location 2007
Table 13 Financial Cards: Number of Internet Transactions 2002-2007
Table 14 Financial Cards: Internet Transaction Value 2002-2007
Table 15 Financial Cards: Number of Cards by Issuer 2002-2006
Table 16 Financial Cards: Number of Cards by Operator 2002-2006
Table 17 Financial Cards: Point of Sale Transactions by Acquirer 2002-2006
Table 18 Financial Cards Forecast: Transactions 2007-2012
Table 19 Financial Cards Forecast: Value 2007-2012
Table 20 Financial Cards Forecast: Number of Cards in Circulation 2007-2012
Table 21 Financial Cards: Forecast Number of Accounts 2007-2012
Table 22 Financial Cards Forecast: Number of Internet Transactions 2007-2012
Table 23 Financial Cards Forecast: Internet Transaction Value 2007-2012
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - INDONESIA
ARTAJASA PEMBAYARAN ELEKTRONIS, PT - FINANCIAL CARDS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Artajasa Pembayaran Elektronis PT Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
BANK CENTRAL ASIA TBK PT - FINANCIAL CARDS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Bank Central Asia Tbk PT Key Facts
Summary 4 Bank Central Asia Tbk PT Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
BANK DANAMON INDONESIA TBK, PT - FINANCIAL CARDS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Bank Danamon Indonesia Tbk PT Key Facts
Summary 6 Bank Danamon Indonesia Tbk PT Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
BANK MANDIRI (PERSERO) TBK, PT - FINANCIAL CARDS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Bank Mandiri (Persero) Tbk PT Key Facts
Summary 8 Bank Mandiri (Persero) Tbk PT Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
INDOARTHA CIPTALESTARI, PT - FINANCIAL CARDS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Indoartha Ciptalestari PT Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Smart Cards Sector Performance: 2002-2007
Table 25 Smart Cards Sector Performance: % Growth 2002-2007
Table 26 Smart Cards: Memory Vs Microprocessor 2004-2007
Table 27 Smart Cards: Contact Vs Contactless 2004-2007
Table 28 Smart Cards: Forecast Sector Performance: 2007-2012
Table 29 Smart Cards: Forecast Sector Performance: % Growth 2007-2012
ATM TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 ATM Cards Sector Performance: 2002-2007
Table 31 ATM Cards Sector Performance: % Growth 2002-2007
Table 32 ATM Cards: Forecast Sector Performance: 2007-2012
Table 33 ATM Cards: Forecast Sector Performance: % Growth 2007-2012
DEBIT TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 34 Debit Cards Sector Performance: 2002-2007
Table 35 Debit Cards Sector Performance: % Growth 2002-2007
Table 36 Debit Cards: Number of Cards by Issuer 2002-2006
Table 37 Debit Cards: Number of cards by Operator 2002-2006
Table 38 Debit Cards Transactions by Acquirer 2002-2006
Table 39 Debit Cards Transaction Value by Operator 2002-2006
Table 40 Debit Cards: Forecast Sector Performance: 2007-2012
Table 41 Debit Cards: Forecast Sector Performance: % Growth 2007-2012
CREDIT CARD TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Credit Cards Sector Performance: 2002-2007
Table 43 Credit Cards Sector Performance: % Growth 2002-2007
Table 44 Personal Credit Cards Sector Performance: 2002-2007
Table 45 Personal Credit Cards Sector Performance: % Growth 2002-2007
Table 46 Corporate Credit Cards: Sector Performance: 2002-2007
Table 47 Corporate Credit Cards: Sector Performance: % Growth 2002-2007
Table 48 Credit Cards Transactions by Acquirer 2002-2006
Table 49 Credit Cards Transaction Value by Operator 2002-2006
Table 50 Personal Credit Cards Transactions by Acquirer 2002-2006
Table 51 Personal Credit Cards Transaction Value by Operator 2002-2006
Table 52 Corporate Credit Cards Transactions by Acquirer 2002-2006
Table 53 Corporate Credit Cards Transaction Value by Operator 2002-2006
Table 54 Credit Cards: Forecast Sector Performance: 2007-2012
Table 55 Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 56 Personal Credit Cards: Forecast Sector Performance: 2007-2012
Table 57 Personal Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 58 Corporate Credit Cards: Forecast Sector Performance: 2007-2012
Table 59 Corporate Credit Cards: Forecast Sector Performance: % Growth 2007-2012
CHARGE CARD TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 60 Charge Cards Sector Performance: 2002-2007
Table 61 Charge Cards Sector Performance: % Growth 2002-2007
Table 62 Personal Charge Cards Sector Performance: 2002-2007
Table 63 Personal Charge Cards Sector Performance: % Growth 2002-2007
Table 64 Corporate Charge Cards: Sector Performance: 2002-2007
Table 65 Corporate Charge Cards: Sector Performance: % Growth 2002-2007
Table 66 Charge Cards Transactions by Acquirer 2002-2006
Table 67 Charge Cards Transaction Value by Operator 2002-2006
Table 68 Personal Charge Cards Transactions by Acquirer 2002-2006
Table 69 Personal Charge Cards Transaction Value by Operator 2002-2006
Table 70 Corporate Charge Cards Transactions by Acquirer 2002-2006
Table 71 Corporate Charge Cards Transaction Value by Operator 2002-2006
Table 72 Charge Cards: Forecast Sector Performance: 2007-2012
Table 73 Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 74 Personal Charge Cards: Forecast Sector Performance: 2007-2012
Table 75 Personal Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 76 Corporate Charge Cards: Forecast Sector Performance: 2007-2012
Table 77 Corporate Charge Cards: Forecast Sector Performance: % Growth 2007-2012
PRE-PAID CARD TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 78 Pre-paid Cards Sector Performance: 2002-2007
Table 79 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 80 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 81 Pre-paid Cards: Number of cards by Operator 2002-2006
Table 82 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 83 Pre-paid Cards Transaction Value by Operator 2002-2006
Table 84 Pre-paid Cards by Type 2004-2007
Table 85 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 86 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012
STORE CARD TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
PROSPECTS