BI-Rate Rises: Bank Indonesia Governor Urges Banks to Improve Efficiency to Maintain Credit Growth

Jakarta (ANTARA) - The Governor of Bank Indonesia (BI), Perry Warjio, has called on the banking sector to increase efficiency to prevent an increase in credit interest rates and to continue driving credit distribution, following the decision to raise the BI-Rate by 50 basis points (bps) to 5.25 per cent.

“We are also asking banks to increase efficiency so that they do not raise credit interest rates. Efficiency must be improved to truly encourage credit growth,” said Perry during a press conference following the Bank Indonesia Board of Governors Meeting (RDG) in Jakarta on Wednesday.

Perry stated that the central bank is confident that liquidity in the money and banking markets is currently more than sufficient. In this regard, BI has purchased Government Securities (SBN) in the secondary market in a measured manner to ensure liquidity flows into the money and banking markets. From the beginning of the year until 19 May 2026, BI’s purchases of SBN reached Rp140.57 trillion, which includes secondary market purchases of Rp73.28 trillion.

From the banking perspective, the ratio of liquid assets to third-party funds (AL/DPK) was recorded at 25.39 per cent, while third-party funds continued to grow strongly at 11.39 per cent (yoy) as of April 2026.

According to BI records, banking credit in April 2026 grew by 9.98 per cent (yoy), higher than the growth of 9.49 per cent (yoy) recorded in March 2026. BI forecasts that credit growth for 2026 will remain stable within the 8-12 per cent range.

In April 2026, the credit interest rate was recorded at 8.73 per cent, while the one-month deposit interest rate stood at 4.16 per cent.

“Bank Indonesia supports economic growth, and liquidity is more than sufficient. Banks can, of course, play their role in credit growth for the economy,” said Perry.