Bank Indonesia Rate Rises: What Happens to Mortgage Borrowers? BTN Chief Speaks

BTN confirms that the 50 basis point increase in Bank Indonesia’s policy rate to 5.25 percent has not directly affected the company’s home loan disbursements. BTN’s Chief Executive Officer Nixon Napitupulu said the BI Rate hike had been anticipated as a step to maintain rupiah stability amid global market pressures.

‘We already expected it to rise because it’s to maintain monetary stability and safeguard the exchange rate. I think it’s normal, nothing unusual,’ Nixon said after the signing of a memorandum of understanding between BTN and KAI at Menara 1 BTN in Jakarta on Friday, 22 May 2026.

Nixon said BTN had forecast from the outset that the BI Rate would rise by 50 basis points. He said the policy is one of the instruments to maintain rupiah stability.

‘From the start I even dared to say I predicted a 50 bps rise. It turned out to be 50 bps. Because to control the exchange rate, one way is that,’ Nixon said.

Nevertheless, Nixon stressed BTN has not yet made adjustments to lending rates or financing disbursements as a result of the policy rate hike. ‘The impact on our credit we haven’t considered yet. There hasn’t been an adjustment yet. No need to worry,’ he said.

He added that adjustments to deposit interest rates, such as deposits, are not immediate because they follow the maturities of customer funds. BTN is currently reviewing the policy’s impact on the company’s funding costs.

‘Secondly, the impact on deposits, we are also reviewing. And it usually doesn’t happen immediately either in line with deposit maturities. The transition usually takes about three months,’ Nixon said.

He added that the majority of BTN’s home loan products are contractual with fixed interest within certain periods, so changes in the BI Rate do not automatically affect borrowers’ installments. ‘Credit-wise it isn’t necessarily direct. Because in BTN’s case most KPRs are fixed and BTN is contractual,’ Nixon said.