OJK Outlines Strategy to Lower Lending Rates and Make Loans More Affordable

JAKARTA, KOMPAS.com - The Indonesian Financial Services Authority (OJK), together with the government, is preparing a strategy to lower bank lending rates in order to make borrowing more affordable for the public.

This effort is being undertaken amid a trend of decreasing bank lending rates, which have now reached around 8% compared to over 9% previously.

“It has already decreased, quite significantly. It’s now near 8%. Previously, it was still above 9. Now it has decreased quite a bit,” said OJK’s Head of Banking Supervision, Dian Ediana Rae, when met at the Mandarin Oriental Jakarta Hotel, Thursday (February 26, 2026).

One of the instruments used to lower lending rates is the placement of government funds, including the Budget Surplus (SAL), in the Association of State-Owned Banks (Himbara).

In addition, the government, through the Ministry of Finance, is also starting to address the practice of offering special rates, which has often been negotiated by government agencies and State-Owned Enterprises (SOEs).

“If lending rates to customers decrease, this will certainly encourage people to borrow, whether for consumption or other purposes,” Dian explained.

“Thus, the economy will continue to grow. That’s the main point,” he added.

From the banking side, more competitive interest rates also have the potential to increase the volume of lending as demand for financing tends to increase.

“Sometimes it’s also part of a lifestyle. Why do people use credit cards or BNPL, in the context of consumption? It’s just a lifestyle,” he said.

“Some can pay it off but wait for their salary. Some pay it off immediately, some don’t,” Dian continued.

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