OJK: Credit Interest Rates Have Declined
The head of banking supervision at the Financial Services Authority (OJK), Dian Ediana Rae, stated that the trend in credit interest rates has declined to around 8 per cent from previously being above 9 per cent. With this decline, she dismissed the perception that banking credit interest rates remain at elevated levels.
“They have now declined. It has been quite significantly down. Already approaching 8 per cent. Previously it was still above 9 per cent,” Dian said, citing Antara, Friday, 27 February 2026.
Based on data from Bank Indonesia (BI), credit interest rates recorded a decline of approximately 40 basis points (bps), from 9.20 per cent in early 2025 to 8.80 per cent in January 2026. According to Dian, this decline represents a positive signal for the banking sector and the economy.
One of the contributing factors is the placement of Rp200 trillion in funds by Finance Minister Purbaya Yudhi Sadewa into the banking system. The government has also extended the period for fund placement until September 2026.
“This (surplus budget balance) certainly increases liquidity and also pulls down interest rate levels. Because if liquidity increases, naturally the competition for funds then becomes stronger, leading to lower rates,” Dian explained.
Additionally, the government is said to no longer be promoting special interest rate practices. Government agencies and state-owned enterprises that have been negotiating interest rate levels are being asked to reduce such practices.
According to Dian, this measure is important for creating a healthier and fairer interest rate structure. With improved efficiency in banking funding costs, credit interest rates to customers have the potential to decline further.
She added that the reduction in credit interest rates is expected to encourage loan demand, both for consumption and business activities, thereby stimulating economic growth. “If credit interest rates to customers decline, certainly this will encourage people to take out loans for consumption and various other purposes. As a result, the economy will become more active,” Dian said.