BPD Investment Credit Interest Rates Higher Than Commercial Banks

Bank Indonesia (BI) data shows that the average interest rate for general bank investment loans was 8.63% per annum in July 2021, down 25 basis points (bps) from December 2020. The highest average investment loan interest rate was from Regional Development Banks (BPDs), reaching 9.72% per annum. This figure is 109 bps above the average investment loan interest rate of general banks.

Meanwhile, the average interest rate for investment loans from state-owned banks (bank persero) was 8.63% per annum, the same as the average interest rate for general banks.

Next, the average interest rate for investment loans from domestic private banks was 8.61% per annum, 2 bps below the average investment loan interest rate of general banks.

The average interest rate for investment loans from foreign/mixed banks was the lowest, at only 6.76% per annum. This figure is 187 bps lower than the average investment loan interest rate of general banks.

The average investment loan interest rate for general banks fell by 25 bps in July 2021 compared to December 2020 (year-to-date/ytd). BPDs recorded the largest decrease, at 68 bps (ytd), followed by foreign/mixed banks at 48 bps (ytd). State-owned banks decreased by 24 bps (ytd), and domestic private banks by 20 bps (ytd).