OJK: Credit Interest Rates Have Fallen to 8 Percent Range

JAKARTA - The Chief Executive of the Banking Supervisory Authority of the Financial Services Authority (OJK) Dian Ediana Rae said that the trend of credit interest had dropped to around 8 percent from previously being above 9 percent.

With this decline, he dismissed the notion that the interest rate on bank loans was still at a high level.

"Now it has gone down. It is quite significant. It is close to 8 percent. Previously it was still above 9 (percent)," said Dian after the The 2nd Indonesia Climate Banking Forum (ICBF) in Jakarta, quoted by Antara, Friday, February 27.

Based on Bank Indonesia (BI) data, the credit interest rate was recorded to have fallen by around 40 basis points (bps), from 9.20 percent at the beginning of 2025 to 8.80 percent in January 2026.

According to Dian, this decline is a positive signal for the banking sector and the economy.

One of the contributing factors is the placement of funds of Rp200 trillion by the Minister of Finance Purbaya Yudhi Sadewa into the banking system. The government also extended the placement of funds until September 2026.

"It (SAL) will definitely add liquidity, and also drag down the interest rate. Because if, for example, there is more liquidity, then the competition for funds will certainly be lower," he said.

In addition, the government is said to no longer encourage the practice of special interest rates. In fact, government agencies and SOEs that have been negotiating interest rates are asked to suppress this practice.

According to Dian, this step is important to create a healthier and equitable interest rate structure. With the efficiency of banking fund costs, the interest rate on loans to customers has the potential to go down.

He added that the decline in credit interest is expected to encourage loan demand, both for consumption and business activities, so that it can move the economy.

"If the interest rate on loans to customers is reduced, of course this will encourage people to take loans for consumption, for various things, so that the economy will grow," concluded Dian.