List of Consumer Loan Interest Rates from Various Bank Groups

Bank consumer loan interest rates decreased in line with lower inflation rates during the pandemic. Government restrictions on social activities to curb the spread of Covid-19 slowed demand for goods.

Bank Indonesia (BI) data shows that the average interest rate for consumer loans from general banks was 10.73% per annum in July 2021. This figure is down 24 basis points (bps) compared to the year-end position of 10.97% per annum.

The average interest rate on consumer loans was highest from foreign or mixed banks, reaching 23.02% per annum in July 2021. This foreign bank consumer interest rate actually increased by 95 bps compared to 22.07% per annum in December 2020. Thus, the difference with the average consumer loan interest rate of general banks is more than 12,000 bps.

Next, the average consumer loan interest rate for Regional Development Banks (BPD) was 11.27% per annum. This figure is down 21 bps compared to the year-end position of 11.48% per annum. Then, the average consumer loan interest rate for national private banks was 10.41% per annum in July, down 24 bps from 10.65% per annum at the end of 2020.

Furthermore, the average consumer loan interest rate for state-owned banks (bank persero) was recorded as the lowest, at only 10.28% per annum in July 2021. This figure is 45 bps lower than the average interest rate for general banks. This loan interest rate also decreased by 28 bps from 10.56% per annum at the end of last year.

For information, in August 2021, inflation was 0.03% compared to the previous month (month-to-month/m-to-m). Compared to August 2020, the inflation rate was 1.59% (year-on-year/yoy). Compared to December 2020, the inflation rate was 0.84% (year-to-date/ytd).

Amidst controlled inflation, Bank Indonesia set its benchmark interest rate, the BI 7-day (Reverse) Repo Rate, at 3.5% since February 2021.