When BRI Boss Responds To The BI Reference Interest Rate Increase: Right

JAKARTA - President Director of PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) Sunarso gave a response regarding Bank Indonesia's decision to raise the benchmark interest rate by 25 basis points to 6.25 percent.

Sunarso said, in the midst of a global and domestic situation full of uncertainty, central banks need to take steps to maintain inflation and the value of rupiah tuka which is increasingly widespread.

"I think BI is right in order to control the exchange rate and control inflation by raising interest rates," said Sunarso in an online press conference on his first quarter performance presentation, Thursday, April 25.

Sunarso said that BI's decision to raise interest rates was a rational and logical decision in the midst of Indonesia's efforts to control inflation and weaken the exchange rate.

Sunarso said that this interest rate increase certainly had an impact on banks, which of course took the burden of maintaining banking liquidity in order to maintain exchange rates and inflation.

"And now the impact is that we bear the burden caused by this turmoil that must be embraced by the crowds. Banks must struggle to maintain liquidity in the midst of interest rates," he said.

For BRI, he said, this interest rate increase did not have a significant impact on the company because it had a strong capital condition.

In the midst of the strict liquidity of national banking as a result of the era of high interest rates, BRI managed to maintain the liquidity ratio at an adequate level, where the bank's Loan to Deposit Ratio (LDR) was recorded at 83.28 percent at the end of March 2024.

In terms of capital, BRI is also able to maintain a strong capital ratio with a Capital Adequacy Ratio (CAR) of 23.97 percent.

"With the adequate liquidity and capital conditions, the company still has room to grow better," he concluded.