BI Rate Rises, Rosan Emphasizes No Order to Hold Credit Interest Rates

Minister of Investment and Industrialization and Danantara CEO Rosan Perkasa Roeslani. (Photo: Doc. Antara)

JAKARTA - The increase in the Bank Indonesia benchmark interest rate was not followed by special instructions from President Prabowo Subianto to state-owned banks to hold credit interest.

The Minister of Investment and Industrialization and Head of BPI Danantara Rosan Roeslani confirmed that the President did not give such instructions when meeting with the directors and commissioners of Himbara at the Presidential Palace, Thursday (18/6).

"No. No," said Rosan when asked if the President asked banks to hold off on raising credit interest rates.

According to Rosan, the main focus of the government is on increasing the efficiency and productivity of the banking sector so that credit distribution remains maintained even though the cost of funds is under pressure.

He said that bank credit in the past year has still grown an average of 15 percent. At the same time, third-party funds have also increased by double digits. The condition of credit quality is also considered healthy. The ratio of non-performing loans (NPL) in Himbara banks is in the range of 0.9 to 1.8 percent.

"These are things that must be improved, which must be improved in their efficiency so that even though there is an increase in interest rates, lending to the community and the business world, especially MSMEs, can still be maintained," said Rosan.

According to Rosan, the health of the banking sector is an important capital so that credit continues to flow into the productive sector without neglecting the principle of prudence which is the foundation of the banking industry.