OJK Reveals Special Rate Requests From Government Accounts

Chairman of the OJK DK Mahendra Siregar (Photo: Antara)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar revealed that there were a number of government-owned accounts that also asked for special deposit interest rates or special rates.

He added that the request was now rejected by banks, along with the placement of government funds of Rp200 trillion in the Association of State-Owned Banks (Himbara) which resulted in a decrease in the deposit interest rate to around 4 percent.

According to Mahendra, prior to the placement of the funds, many customers, including government entities, had the bargaining power to ask for higher deposit rates. However, with the entry of low-interesting government funds, the bank's bargaining position towards deposits, including the government, became stronger.

"He said no, because we had a lower one, we just wanted that, so that's what happened, so when it matured from these deposits, there was a change in the rate of interest that occurred. Or it was offered and then accepted by each deposit. Now what we see is that the value is lower than before. But that's all, maybe I went second. The next one, I think should be improved," he told the media crew, Wednesday, October 22.

He considered this phenomenon important to be the concern of the Minister of Finance Purbaya Yudhi Sadives as the state treasurer, considering that there are still government-owned accounts asking for higher interest rates in the midst of efforts to adjust the deposit interest rate to be more in line with benchmark interest rates such as the yield of Government Securities (SBN) and BI rates.

"Because we also report that there are a number of accounts owned by the government, they also ask for a special rate. This also needs to be known by the Minister as a form of state treasurer and also as the one who takes care of all of us, so that he knows how this is and who it is. We have said it, but especially if what will be done by the Minister, please ask him later," he explained.

According to him, although the market mechanism still applies, the encouragement from the government's fund owner will accelerate the reduction process.

"But if it is left solely on the market mechanism, it will take a bit of time. But if there are fund owners who have the desire to also see the interest rate drop even faster, yes of course they have flexibility there. And instead, the Minister of Finance has its authority," he said.

However, Mahendra was reluctant to elaborate on the amount of the special rate requested for government fund savings and suggested asking directly to the Minister of Finance.

"If the special rate asks for a higher, not lower. (How much is the range?) Ask the Minister later," he explained.