REPUBLIKA.CO.ID, JAKARTA — Bank Indonesia (BI) highlighted the slow decline in bank credit rates even though BI Rate has been lowered six times since September 2024. BI Governor Perry Warjiyo said that the trend in interest rates in the money market to SBN yields has already decreased significantly, while credit interest is moving much slower.

“In the money market, in line with the decrease in BI Rate by 125 basis points since September 2024, the INDONIA rate fell 144 bps from 6.03 percent in early 2025 to 4.59 percent on September 16, 2025,” Perry said in a press conference of BI's September 2025 Board of Governors Meeting, Wednesday (17/9/2025).

The interest rate on BI rupiah securities (SRBI) for 6, 9, and 12 months also corrected by more than 200 bps. The 2-year SBN yield fell 185 bps to 5.11 per cent, while the 10-year note weakened 94 bps to 6.32 per cent.

However, the bank deposit rate only edged down 16 bps, from 4.81 per cent to 4.65 per cent in August 2025. Perry explained that the condition was influenced by the granting of special rates to large depositors, whose share amounted to 25 percent of the total third-party funds (DPK).

“The fall in credit rates is running even slower, which is only 7 bps from 9.20 per cent to 9.13 per cent in August 2025,” he said.

Perry reiterated that BI believes deposit and credit rates need to fall immediately in order to increase the distribution of bank credit. The move was considered essential to strengthen national economic growth, in line with the government's Asta Cita Program.

“The decline in banking rates is still slow going and therefore needs to be accelerated,” insisted Perry.

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