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List of 2019 Bank Credit Interest Rates, How Big?

Current loan interest rates requested by President to be lowered. In the Indonesia Banking Expo  2019 on last Wednesday (6/11), the President invited banks in Indonesia to reduce lending rates as a form of adjustment to changes in the Bank Indonesia (BI) benchmark interest rate.

President’s invitation was responded by bankers by clapping as reported. The President also invited banks in Indonesia to play an active role in financial education to remote areas of Indonesia. That way, banks also simultaneously distribute credit to the micro, small and medium business sector (MSME).

Well, it’s interesting to see, how big is the interest rates set by banks in Indonesia today? Is the current interest rate so high that the President must remind? Here is the review.

Also read: Economy Slows, Bank Indonesia Will Raise Interest Rates Again

This is how much the 2019 loan interest rate is from data reported by the OJK

This is how much the 2019 loan interest rate is from data reported by the OJK

The logos of banks in Indonesia. To find out the amount of credit interest rates of banks in Indonesia in 2019, the public can check it from the report on the Prime Lending Rate (SBDK) released by the Financial Services Authority. The amount of the prime lending rate is used by banks in determining loan interest.

Prime Lending Rate (SBDK) is the lowest interest rate that reflects the reasonableness of costs incurred by banks, including expectations of future benefits. There are three components used in calculating prime lending rates, namely the Cost of Funds for Credit, bank overhead costs , and profit margins.

Well, here is a list of SBDK banks in Indonesia in 2019 as reported by the FSA in August 2019.

Also read: Latest in September 2019, This is the Highest Deposit Interest Rate at Various Banks

What about the Bank Indonesia benchmark interest rate?

What about the Bank Indonesia benchmark interest rate?

As already mentioned above, President invites banks in Indonesia to adjust lending rates with the reference interest rate of Bank Indonesia (BI). Generally, changes that occur in the BI benchmark interest rate are followed by changes in bank interest rates.

If the BI reference interest rate falls, deposit rates or bank lending rates usually go down. However, the facts that occur, bank interest rates are down only deposit rates in the form of deposits. While bank lending rates, instead of decreasing, there remain no changes to adjust.

Then, what is the current BI benchmark interest rate? Just for information, BI has several times lowered the benchmark interest rate. This decline is a response to the weakening of the global economy. The following is a list of BI 7-Day (Reverse) Repo Rate reference rates.

Well, that was information about the lending rates of banks in Indonesia in 2019 and the current magnitude of the BI reference interest rate. Hopefully the information above is useful! 

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