Himbara Optimistic BI Rate Hike Won't Hamper Credit Growth
Banks under the Association of State-Owned Banks (Himbara) assess that the increase in the benchmark interest rate by Bank Indonesia (BI) to 5.5 percent will not hamper credit growth. The state-owned banks are confident that strong liquidity, capital, and asset quality conditions will keep the intermediary function running amidst global economic turmoil.
BRI Corporate Secretary Dhanny stated that BI’s decision to raise the BI Rate is part of an effort to maintain national macroeconomic stability, particularly the rupiah exchange rate, amidst rising volatility in global financial markets. According to him, the fundamentals of the national banking industry remain strong. “BRI believes that the fundamentals of the national banking industry remain robust, supported by adequate capital, maintained liquidity, and resilient asset quality,” Dhanny said.
As a bank focusing on the MSME segment, BRI will continue to monitor market developments and interest rate movements and ensure the intermediary function runs optimally to support national economic activity.
Similarly, BNI Corporate Secretary Okki Rushartomo stated that the BI Rate hike is a necessary step to maintain national economic stability and strengthen investor confidence in Indonesia’s economic prospects. “Maintained stability is an important foundation for the sustainability of growth in the real sector and the banking industry,” Okki said. According to him, macroeconomic stability is an essential prerequisite for banks to continue performing their intermediary function in a healthy and sustainable manner. Therefore, BNI is committed to maintaining selective, productive, and prudent financing distribution, whilst still observing the potential impact of the interest rate increase on credit demand.
A similar view was conveyed by Bank Mandiri Director of Finance & Strategy Novita Widya Anggraini. According to her, BI’s decision reflects the central bank’s firmness in maintaining rupiah stability amidst external pressures, including the conflict in the Middle East and foreign portfolio investment outflows. “Maintained stability is an important foundation for the sustainability of economic activity, the confidence of business actors and the public, as well as the creation of a healthy growth space in the long term,” Novita said. She affirmed that banks continue to have an important role in maintaining the smooth running of economic activity through the intermediary function and reliable transaction services. Therefore, Bank Mandiri is optimistic it can continue to support the financing needs of business actors, MSMEs, and the public.
Meanwhile, BSI Corporate Secretary Wisnu Sunandar assessed that BI’s policy still provides room for the banking industry to grow sustainably. According to him, BSI has strength in its low-cost fund structure supported by Hajj savings and savings based on wadiah contracts. “A good intermediary function through the optimisation of low-cost funds is expected to provide a multiplier effect on competitive financing distribution so that it can reach a wider customer base,” Wisnu said.
From a macroeconomic perspective, BTN Chief Economist Myrdal Gunarto assessed that the BI Rate hike was an anticipatory step to maintain rupiah stability and control inflationary pressures amidst global uncertainty. With the support of sustained investment and banking intermediation, BTN estimates that Indonesia’s economic growth can still reach around 5.2 percent this year.