OJK Godok Rules For Transparency Of Credit Interest Rates, Will Launch This Year

JAKARTA - The Financial Services Authority (OJK) is currently drafting a Financial Services Authority Regulation (POJK) related to transparency of bank credit interest rates.

OJK Banking Supervision Chief Executive Dian Ediana Rae said the preparation of the POJK had entered the refinement process.

"Now, the rules are getting worse, which is in process," said Dian at the press conference of the OJK Board of Commissioners meeting in September, Monday, October 9.

Later the OJK will also ask for the opinion of related parties through a public hearing process and also consult with the House of Representatives (DPR).

Furthermore, Dian said that the regulation related to the transparency of credit interest rates had previously been stated in POJK number 3 of 2019 and with the latest POJK, it would later regulate the transparency and publication of credit basic interest rates for conventional commercial banks in accordance with the mandate of Law Number 4 of 2023 concerning Financial Sector Development and Strengthening (UPU PPSK).

"Hopefully the target will not be until the end of the year, we will issue provisions for the transparency of this credit interest," concluded Dian.

Just so you know, until mid-2023, the banking Net Interest Margin (NIM) is still high on average.

Referring to OJK data, the position of NIM in the banking industry in April 2023 was at the level of 4.77 percent, an increase compared to the same period last year which was at the level of 4.63 percent, but was stagnant from the position in March 2023.

In the 2023 Financial Services Industry Meeting in Jakarta, Monday, February 6, 2023, President Joko Widodo (Jokowi) had mentioned the NIM banking in Indonesia, which at that time was 4.4 percent. According to the President, the NIM bank in the country may be the highest in the world.