BII clients reject rate hike

JAKARTA (JP): Bank Internasional Indonesia (BII)'s clients have opposed the bank's decision to raise its interest rates on home loans to 27 percent from 19 percent.

Benny A. Kusbini, the chairman of a forum of BII's home loan borrowers, said that with the interest rate hike, most clients with home loans would not be able to service their debts.

The forum also said it would resist any moves by the bank to seize houses of borrowers who defaulted on their loans. It also asked the government to find a solution that would be fair to both the forum's members and the bank.

Many banks have significantly increased their lending rates due to the sharp increase in the interest rates of time deposits over the last several months. But many borrowers, some of whom have lost their jobs, refuse to accept the move.

The forum also urged banking and legal experts to help protect customers' rights to avoid more social unrest by handling the problems wisely and giving legal services to bank clients. (gis)