BI Lowers Interest Rates, Bank Mandiri Strengthens The Role Of Encouraging National Economic Growth

BI Rate (Photo: Antara)

JAKARTA - Bank Mandiri welcomed Bank Indonesia's move to lower the BI Rate benchmark interest rate by 25 basis points to 5.00 percent.

Bank Mandiri Director of Finance & Strategy Novita Widya Anggraini said that this policy is an accommodative step to maintain national economic stability in the midst of global dynamics, while at the same time encouraging the acceleration of growth while still paying attention to controlled inflation and stable exchange rates.

Novita stated that this adjustment is a positive signal for the business world and Bank Indonesia has shown a strategic direction.

"We at Bank Mandiri are ready to strengthen synergies with the monetary authority through healthy credit growth, measurable, and in favor of the needs of the community and business actors. This reflects our commitment to continue to support the national economy," said Novita in her official statement, Wednesday, August 27.

In line with that, he said Bank Mandiri would continue to carry out its intermediation function in a healthy and selective manner, especially supporting the productive sector and strengthening the people's economy.

According to him, focusing on wholesale ecosystem-based growth, the company is optimistic that it will be able to grow sustainably through prudential banking principles.

Regarding credit interest rates, he said that Bank Mandiri emphasized that it had made adjustments to the credit segment based on the referral rate according to the direction of the BI Rate decline.

According to him, the transmission is influenced by industrial liquidity conditions, the cost of funds structure, and communication to customers.

He added that the credit portfolio that directly refers to the BI Rate only covers a limited portion compared to the total portfolio.

Novita menyampaikan penurunan BI Rate 25 bps diperkirakan menurunkan yield kredit sekitar 1015 bps di level portofolio.

"The impact on interest income is relatively minimal and can be managed through a strategy to increase the portion of retail credit and MSMEs while maintaining a balance of wholesale portfolios," he explained.

For information, until May 2025, Bank Mandiri recorded a wholesale credit growth of 15.8 percent year on year (YoY), far above the industry average of 8.43 percent (yoy).

Meanwhile, housing loans or mortgages also grew 14.2 percent (yoy), the retail segment rose 8.95 percent on an annual basis, in line with the industrial trend.

He emphasized that this growth shows that Bank Mandiri products are still in demand by the market.

Novita said that credit quality is maintained with an NPL ratio of only 1.06 percent on a bank only basis in the same period, lower than the industry average.

Healthy growth is a must. We will continue to prioritize the precautionary principle to remain resilient in facing various economic cycles and market dynamics," he stressed.

To expand access to financial services, Bank Mandiri optimizes digital capabilities through Livin' by Mandiri for retail customers, Kopra by Mandiri for the wholesale segment, and Livin' Merchant for MSMEs.

Novita conveyed that with this innovation, the company is trying to strengthen the foundation of national economic growth that is inclusive as well as encourage the acceleration of financial services in all levels of society.