Fierce Liquidity War: OJK Tells Banks to Do This

Jakarta, CNBC Indonesia - The Financial Services Authority (OJK) has revealed that banking competition to attract deposits remains quite competitive amid high benchmark interest rates. Chief Executive of Banking Supervision at OJK, Dian Ediana Rae, stated this occurs because customers with large deposits generally have higher bargaining power with banks.

Nevertheless, he emphasised that banks need to optimise their funding strategies, particularly by increasing the proportion of low-cost funding. This effort is crucial to create flexibility in setting lending rates, while maintaining competitiveness and profitability amid evolving market dynamics.

“This is considering that the cost of funds for credit is one of the components in setting lending rates,” Dian said in a statement quoted on Thursday (23/7/2026).

OJK has issued POJK No.13 of 2024, which contains rules standardising the components for calculating the Prime Lending Rate (SBDK) and requires banks to publicly announce the components forming the SBDK, including the cost of funds for credit, so that it can be easily accessed by all stakeholders, especially the public.

Furthermore, Dian stated that OJK consistently urges banks to gradually adjust their interest rates to remain aligned with market conditions, maintain sound financial ratios, and ensure healthy interest rate competition.

“OJK also urges banks to provide complete and adequate information regarding the deposit products in question as a form of consumer education and the implementation of consumer protection,” Dian concluded.