INDONESIA ISLAMIC (HALAL) CREDIT CARD

WHAT IS IN INDONESIA A SHARIA COMPLIANT CREDIT CARD ?

In Indonesia, an Islamic (halal) credit card—kartu kredit syariah—is a payment product built on contracts approved by the national Shariah standards, notably DSN–MUI.

Instead of charging interest (ribā) on outstanding balances, issuers use a combination of fee-based and service-based agreements (commonly Kafalah, Qardh and Ijarah) to price the service transparently.

In Indonesia. the halal card is paired with policies that discourage or restrict non-permissible spend categories (e.g., gambling) and that treat late charges, if any, as charitable amounts rather than bank income.”,