JAKARTA - PT Allo Bank Indonesia Tbk (BBHI) positively welcomed Bank Indonesia (BI)'s decision to lower the benchmark interest rate or BI-Rate by 25 basis points (bps) to 5.25 percent.
Director of Risk, Compliance & Legal Allo Bank Ganda Raharja Rusli said that the high interest rate so far has made industry players outside of banks put a brake on credit applications.
Therefore, according to him, with the decline in interest rates from Bank Indonesia, his party hopes that this will be a positive catalyst for the industry to start increasing credit applications.
"Banks can also facilitate this even better this year and I think it's a good thing for all parties and the economy," he told the media crew, Thursday, July 17.
He added that the reduction in interest rates was indeed highly anticipated, so banks must immediately respond by making adjustments.
"The question is whether this quarter or next quarter, but we have been waiting for this decline in interest rates and the bank immediately responded," he said.
However, Doubles also reminds that there are several things that need to be anticipated, even though banks can lower credit interest rates, customers sometimes still expect higher savings interest rates.
He added that his party must balance these two things, because the reduction in savings and credit interest rates should go hand in hand.
"But if the market sometimes responds more slowly, the market still expects higher savings, the credit interest rate also cannot go down", he said.
He emphasized that banks will usually respond immediately to lower interest rates, but will still monitor the movement of other banks and market conditions.
"We will adjust it because again we will see the demand and supply on the side that yes, interest rates have dropped the bank will respond. But the response we see will actually be lowered. Otherwise, it will be too expensive for the credit interest rate as well," he concluded.
Previously, Bank Indonesia (BI) decided to lower the benchmark interest rate or BI-Rate by 25 bps to 5.25 percent.
In addition, BI also lowered the deposit facility interest rate and lending facility rate by 25 bps, bringing it to 4.50 percent and 6.00 percent, respectively.
BI Governor Perry Warjiyo said BI decided to maintain the benchmark interest rate at the level of 5.50 percent.
"The Meeting of the Board of Governors (RDG) of Bank Indonesia on July 15 and 16, 2025 decided to reduce the BI-Rate by 25 bps 5.25 percent," Perry said at a press conference, Wednesday, July 16.
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According to Perry, this decision is consistent with the lower inflation forecasts for 2025 and 2026 in the target of 2.5 percent plus minus 1 percent.
In addition, he conveyed and maintained the stability of the Rupiah exchange rate in accordance with its fundamentals, and the need to continue to encourage economic growth.
In the future, Perry said that Bank Indonesia will continue to pay close attention to the space for lower interest rates to encourage economic growth while maintaining the stability of the Rupiah exchange rate and achieving inflation targets in accordance with the dynamics that occur in the global and domestic economy.
Meanwhile, Perry said that accommodative macroprudential policies will continue to be optimized with various strategies to increase credit/financing, reduce interest rates, and flexibility in banking liquidity management in order to encourage sustainable economic growth.
"The payment system policy is also directed to help support economic growth through the expansion of the acceptance of digital payments, as well as strengthening infrastructure and consolidating the industrial structure of payment systems," he said.
According to Perry, the direction of the mix of monetary, macroprudential, and payment systems is to maintain stability and encourage sustainable economic growth.
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