Credit Hasn't Been Absorbed Is The Reason BI Rate Drops To 4.75 Percent

JAKARTA - Bank Indonesia (BI) has again cut the benchmark interest rate by 25 basis points (bps) to 4.75 percent and so far this year, the decline is the fifth time.

However, BI Governor Perry Warjiyo said that the decline in the benchmark interest rate had not been fully responded to by banks through lower deposit interest rates and credit interest rates.

"Why hasn't the deposit interest rate dropped yet? Because one of the factors is that there is a special rate in large deposits, which amounts to around 25 percent of the total Third Party Fund (DPK) of IDR 2,380.4 trillion. It can be calculated later, 25 percent of the total DPK uses a special rate. That's why the one month deposit interest rate has only dropped 16 basis points during 2025," he said at a press conference, Wednesday, September 19.

According to him, the same thing also happened to credit interest rates, where bank credit interest only fell 7 basis points, from 9.20 percent at the beginning of the year to 9.13 percent in August 2025.

In addition, he conveyed that the demand for credit also affected and there were loans that had not been disbursed or disbursed loans in large quantities, amounting to Rp2,372.1 trillion or 22.71 percent of the total available ceilings.

"So the loans that have been given by the bank have not been all used. This is reflected in the disbursed loan, which amounts to Rp2,372.1 trillion or 22.71 percent of the available ceiling," he said.

Perry conveyed that his party considered the need to accelerate the reduction in deposit and credit interest rates to encourage an increase in financing distribution.

According to him, this step is an important part of efforts to support national economic growth, in line with the Asta Cita Program run by the government.