Economist: Extension of SAL Placement in Himbara to Encourage Trend of Lower Lending Rates
Jakarta (ANTARA) - Chief Economist of Bank Mandiri, Andry Asmoro, views that the extension of the placement period for IDR 200 trillion in SAL (Surplus Budget Funds) in Himbara (Association of State-Owned Banks) until September 2026 has a positive impact because it can ultimately contribute to strengthening the trend of decreasing lending rates.
“If we look at the positive side of extending the SAL fund placement, the ultimate effect should be to encourage a decrease in lending rates,” said Andry Asmoro, also known as Asmo, in Jakarta on Wednesday evening.
He explained that the placement of excess budget funds (SAL) in Himbara member banks essentially helps to ease liquidity competition, especially among large banks, particularly as liquidity demand increases leading up to Eid al-Fitr or other major celebrations.
When liquidity competition eases, he said, this will have an impact on reducing deposit rates, which can then encourage a decrease in lending rates.
He stated that historical trends show that the net interest margin (NIM) of banks has gradually begun to decline, so lending rates are likely to adjust.
“But perhaps, in my opinion, the decrease in lending rates will not be as large as the decrease in the BI-Rate due to its inelasticity,” he said.
Regarding credit growth, the easing of liquidity through the placement of SAL funds is also believed to provide space for banks to further encourage credit growth.
The credit growth of the banking industry this year is projected to be in the range of high single digits to low double digits, around 9-11 percent, according to Bank Mandiri’s economic team projections.
With this, according to Purbaya, banks do not need to worry about losing liquidity because the government will continue to support liquidity in the market. The policy will be re-evaluated in September.
Purbaya also said that the policy also encourages a decrease in deposit and lending rates.
According to Bank Indonesia (BI), the decrease in the BI-Rate by 125 basis points (bps) during 2025 and the expansion of BI’s monetary liquidity have had a significant impact on reducing interest rates in the money market.
According to BI, the transmission of the policy interest rate reduction to bank interest rates continues, but is more limited.
The one-month deposit rate has only decreased by 68 bps from 4.81 percent in January 2025 to 4.13 percent in January 2026.
BI also emphasized that the decrease in deposit rates needs to be further transmitted to a decrease in bank lending rates, which have only decreased by 40 bps, from 9.20 percent at the beginning of 2025 to 8.80 percent in January 2026.