BTN Mortgage Instalments Unaffected by Rupiah Weakness, Why?

JAKARTA, KOMPAS.com - PT Bank Tabungan Negara (Persero) Tbk (BBTN) has confirmed that the weakening of the rupiah exchange rate has not yet affected customers’ Home Ownership Credit (KPR) instalments, including those with floating interest rates.

On trading day today, Wednesday (15/4/2026), the rupiah exchange rate in the spot market weakened by 16 points or 0.09 percent to the level of Rp 17,143 per US dollar.

BTN President Director Nixon LP Napitupulu stated that the distribution of KPR and the company’s funding sources are almost entirely in rupiah, not in foreign currencies (valas) such as the US dollar, so exchange rate fluctuations do not impact KPR instalment calculations.

Nixon continued that BTN’s KPR is more sensitive to movements in the Bank Indonesia benchmark interest rate (BI rate) than to currency movements.

However, as is known, up to now the BI rate has remained at 4.75 percent since September 2025.

Therefore, BTN’s KPR instalments are currently unaffected.

If this rupiah weakening is responded to by BI with an increase in the BI rate, an increase in the BI rate would trigger national banks to raise lending interest rates, which would then affect KPR instalments, especially those with floating rates.

“Will currency impact interest rates? It could. But when, nobody knows. So BTN is more interest rate sensitive rather than forex rate sensitive because we are in rupiah,” he explained.

“An increase in instalments depends on an increase or fluctuation in interest rates; if the impact of the rising dollar exchange rate is that credit interest rates also rise, then credit instalments will also rise,” said Trioksa to Kompas.com on Wednesday.

Trioksa explained that the impact of the rupiah weakening will only be felt on KPR instalments if that condition drives an increase in credit interest rates.

In such a situation, a surge in KPR interest rates would result in an increased instalment burden that debtors must pay.

That policy would then impact the increased cost of funds for banks, namely the costs that banks must incur to raise funds from the public, such as through deposits and savings.

“So the main factor in credit interest rate fluctuations is the bank’s cost of funds. If the bank is efficient and the cost of funds is low, it will certainly be more flexible in setting credit interest rates,” said Trioksa.