Banks Rush to Revise Business Plans and Loan Rates After BI Rate Hike

Jakarta, CNBC Indonesia - Banks are collectively revising their business plans (RBB) in response to the aggressive increase in Bank Indonesia’s (BI) benchmark interest rate and the latest macroeconomic conditions.

As is known, BI raised the interest rate by 50 basis points at its May Board of Governors Meeting, and surprisingly increased it by another 25 bps at a weekly meeting last week. At the June Board of Governors Meeting, the central bank again hiked the rate by 25 bps, bringing the BI Rate to 5.75%.

Bankers have stated they will adjust lending rates in response to the benchmark rate. This is being done to maintain profitability and manage the cost of funds (CoF).

President Director of CIMB Niaga (BNGA), Lani Darmawan, acknowledged that the bank will revise its RBB downwards, though not significantly. She said the revision primarily targets third-party fund (DPK) collection targets in order to maintain liquidity.

“[The DPK growth target] is being revised downwards. Considering that the CoF will certainly rise and we must adjust to credit growth. But it is not significant,” Lani told CNBC Indonesia on Tuesday (23/6/2026).

Regarding lending rates at Indonesia’s second-largest private bank, Lani said adjustments will be made flexibly. Meanwhile, she acknowledged there will be challenges in maintaining profitability, as reflected in the net interest margin (NIM) ratio. “NIM is becoming increasingly challenging. We estimate it will be eroded to around 3.8%,” she said.

Bank Sahabat Sampoerna (BSS) is also revising its RBB. Finance and Business Planning Director Henky Suryaputra said this was based on the results of stress testing. He stressed that the bank prioritises quality growth over high growth alone.

“We are making minor internal adjustments to ensure liquidity and capital remain strong. Our focus at Bank Sampoerna is not merely pursuing aggressive growth, but rather quality and sustainable growth,” Henky explained to CNBC Indonesia on Tuesday (23/6/2026).

According to him, the increase in the benchmark interest rate inevitably puts pressure on funding costs. Henky noted that BSS cannot simply pass the entire increase in CoF onto debtors, especially since the bank’s main focus is on MSMEs. As a result, the bank’s NIM has the potential to be compressed.

“If lending rates are raised too aggressively, it actually risks increasing Non-Performing Loans (NPL). Therefore, a measured compression of NIM may occur, but it will be kept within healthy limits,” he said.

To suppress CoF and operational costs, BSS is striving to increase the portion of low-cost current account and savings account (CASA) funds to reduce reliance on expensive deposits. Meanwhile, interest rate adjustments will be made selectively.

“Adjustments to lending rates will also be carried out selectively and on a case-by-case basis, depending on the risk profile of each debtor’s business sector. We are committed to remaining a partner that supports the sustainability of MSME businesses in Indonesia, rather than burdening them,” Henky asserted.

Similarly, Bank Oke Indonesia (DNAR), also known as OK Bank, is revising its RBB. Compliance Director Efdinal Alamsyah emphasised that the revision is not solely due to the BI Rate hike, but also considers other aspects related to macroeconomic developments, banking industry dynamics, performance evaluations, and evolving business opportunities.

“Regarding strategy, we strive to maintain a balance between credit growth, asset quality, cost of funds, and optimal profitability,” he told CNBC Indonesia on Tuesday (23/6/2026).

Bank INA Perdana (BINA) has also decided to adjust its lending rates. Deputy President Director Yulius Purnama Junaedi said the Salim Group-owned bank is also striving to maintain its NIM at a level of 3.5%-4%. “Considering the significant increase in the BI Rate, we are in the process of adjusting lending rates,” Yulius explained to CNBC Indonesia on Tuesday (23/6/2026).

Not to be left out, Indonesia’s largest private bank, Bank Central Asia (BCA), is also closely monitoring the benchmark interest rate and economic conditions. EVP Corporate Communication & Social Responsibility BCA, Hera F. Haryn, stressed that the bank’s funding costs are relatively well-maintained due to high growth in low-cost CASA funds.

“As of March 2026, BCA’s CASA reached Rp1,089 trillion, growing 11.2% year-on-year. As a result, CASA dominates approximately 85.2% of total DPK. This strategy is expected to support CoF stability prudently,” Hera detailed to CNBC Indonesia on Tuesday (23/6/2026).

Therefore, BCA is committed to prudently channelling quality credit to various segments and sectors. Nevertheless, the bank stated it will continue to consider prudential principles with disciplined risk management.