In the effort of establishing financial system stability that will eventually support to boost a sustainable national economy, the policy of future banking industry development will be directed to reach a sound, strong and efficient banking system.
With reference to this objective, in order to fostering high economic growth through credit disbursement, since 2006 it is deemed essential for Bank Indonesia to support the implementation of banking intermediation function by the establishment of Credit Bureau or Biro Informasi Kredit (BIK). The main task of Credit Bureau is to collect and record credit/loan facilities data, and finally distribute it as credit information that will be further known as Individual Debtor Information (IDI) History. IDI History will be used by financial institutions, member of Credit Bureau (bank and non-bank financial institutions), as well as the public both in term of individual and business entity.
For financial institution, IDI History can be used, among other, to identify the credibility (creditworthiness) of the prospective debtor of credit/loan facilities and to verify whether the concerned prospective debtor is receiving credit/loan facilities from other institution or not. This comprehensive information will provide assistance to financial institution in:
::The following issues need to be respected:
- Conducting analysis for credit/loan facilities allocation in order to expedite the process of provision of credit/loan facilities; and
- Applying risk management with the objective to prevents any failure in repaying credit/loan facilities that has been provided and any sort of fraud.
- The authority to decide on the provision of credit/loan facilities will be under the policy of the concerned financial institution. IDI History will only be one of the supporting documents in decision making related to the provision of credit/loan facilities.
- The authenticity and accuracy of IDI History will be under the responsibility of the financial institution member of the Credit Bureau acting as the reporting entity.
- Any legal consequences arising from the use of IDI History for the interest of the financial institution member of the Credit Bureau, which is not in compliance to the applicable laws, will be under the full responsibility of the concerned financial institution.
- Any legal consequences arising from the use of IDI History by the public will be under the full responsibility of the concerned entity.