Bank Indonesia (BI) has spoken out regarding the policy of placing government funds of Rp276 trillion to banks which are often associated with efforts to encourage a decline in interest rates.
Head of the BI Macroprudential Policy Department, Solikin M. Juhro, assessed that the additional liquidity did provide flexibility in funding, especially for state-owned banks (Himbara).
"(The Rp276 trillion fund) will definitely make the fund structure in the bank himbara more flexible," he said at a media briefing entitled Assessment of the Effectiveness of Macroprudential Policy in Stimulating Credit Growth in 2025, Monday, December 22.
However, Solikin emphasized that this policy does not necessarily have a major impact on the overall decline in credit interest rates.
He explained that banks outside Himbara still face funding constraints, while credit distribution must still be adjusted to the bank's business plan (RBB) and credit pipeline that has been prepared.
"But to the interest rate on credit, the fact that the survey proves it," he said.
According to him, the decline in fund interest rates is indeed possible as funding flexibility increases. However, the impact on credit interest rates needs to be further examined based on actual conditions and survey results.
However, Solikin assessed that all of these policy measures are in principle positive and emphasized that the effectiveness of the policy will be more optimal if accompanied by stronger coordination between stakeholders in the future.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
