Bank Danamon Predicts BI Fixed Rate To Be 6.25 Percent By The End Of 2024

JAKARTA - PT Bank Danamon Indonesia Tbk (Bank Danamon) estimates that the benchmark interest rate or BI-Rate will remain at the level of 6.25 percent by the end of 2024.

"From Bank Danamon itself, we through our economists estimate that this 6.25 percent interest rate will last until the end of the year. So there is no cut in interest rates for this year, most likely next year," said Bank Danamon Jaya's Consumer Funding & Wealth Business Head at the Journalist Class Investment 101: Building Your Financial Future, Wednesday, May 8.

Ivan said that his party is currently focusing on maintaining banking assets and liquidity and has prepared three steps to stay in the midst of a high interest rate situation.

According to Ivan, the first step is to increase low-cost funds or savings through various annual programs, such as Danamon Berkas Beruntun.

The second step is to continue to complete the features in the mobile banking D-Bank Pro.

Ivan conveyed the next step by increasing the number of customers from the affluent and emerging affluent segments, namely private and optimal customers.

Ivan said, based on the results of the stress test that had been carried out, the Company's performance conditions were still under control in the midst of a high interest rate situation.

In addition, Ivan said, in terms of credit, his party will continue to maintain the ratio of non-performing loans (NPL) below 3 percent so that credit growth is targeted to reach 15 percent.

"So it is a thing that is controlled by prioritizing good risk management and good communication with customers. It is hoped that things like the problematic (credit) will not increase," he said.

In addition, Ivan said, his party has not planned to raise the interest rate of Home Ownership Loans (KPR) in the near future and is currently focusing on reviewing the aspect of demand in the housing market after the BI Rate interest rate increases to 6.25 percent.

"So for now we are not directly (asking for mortgage interest rates), the answer is not directly responding that interest rates are raised. Because we are still eyeing credit growth in consumers," he said.

In addition, Ivan assessed that the BI-Rate interest rate increase has the potential to raise loan interest rates, including credits that apply floating interest rates such as home ownership loans (KPR).

Ivan said that his party is currently still eyeing the credit growth of the consumer sector, including mortgages and targets double-digit growth in 2024.

"So we see that the need will remain, and besides that our infrastructure growth is also good, the creation of toll roads, because this is also related to our subsidiary, Adira Finance, which also launched quite good growth for motorcycle loans," he explained.