OJK States Lending Interest Rates Have Fallen to Around 8 Percent

Jakarta (ANTARA) - The Head of Banking Supervision at the Financial Services Authority (OJK), Dian Ediana Rae, stated that the trend of lending interest rates has fallen to around 8 percent, from previously being above 9 percent.

With this decrease, he dismissed the notion that banking lending interest rates are still at a high level.

“Now it has decreased. It has decreased quite significantly. It is already approaching 8 percent. Previously it was still above 9 (percent),” said Dian after the 2nd Indonesia Climate Banking Forum (ICBF) in Jakarta, Thursday.

Based on data from Bank Indonesia (BI), lending interest rates have decreased by approximately 40 basis points (bps), from 9.20 percent at the beginning of 2025 to 8.80 percent in January 2026.

According to Dian, this decline is a positive signal for the banking sector and the economy.

One of the contributing factors is the placement of IDR 200 trillion by the Minister of Finance, Purbaya Yudhi Sadewa, into the banking system. The government has also extended the period for the placement of these funds until September 2026.

“This (SAL) undoubtedly increases liquidity and also lowers interest rates. Because if liquidity increases, competition for funds will naturally decrease,” he said.

In addition, the government is no longer encouraging the practice of providing special interest rates. In fact, government agencies and SOEs that have previously negotiated interest rates are being asked to reduce this practice.

According to Dian, this step is important to create a healthier and fairer interest rate structure. With increased efficiency in the cost of funds for banks, lending interest rates to customers have the potential to decrease as well.

He added that the decrease in lending interest rates is expected to encourage loan demand, both for consumption and business activities, thereby stimulating the economy.

“If lending interest rates to customers decrease, this will certainly encourage people to take out loans for consumption, for various purposes, so that the economy will continue to grow,” Dian concluded.