Bank General Working Capital Credit Interest Rates Fall to 8.7% in November 2021

Bank Indonesia (BI)'s decision to maintain its benchmark interest rate, the BI 7-Days Reserve Repo Rate (BI7DRR), at 3.5% has driven down working capital loan interest rates in the banking sector.

The BI's benchmark interest rate has been at 3.5% since February 2021, marking the 11th time it remained unchanged as of January 20, 2022. The still sluggish national economic conditions due to the Covid-19 pandemic have prompted banks to lower their loan interest rates to make them more affordable for the public.

According to data from the Central Statistics Agency (BPS), the average loan interest rate for working capital in general banks was 8.72% per year in November 2021, down 43 basis points (bps) from 9.15% in December 2020.

Based on data from the Central Statistics Agency (BPS), the average loan interest rate for working capital in general banks was 8.72% per year in November 2021. This figure is down 43 basis points (bps) from the December 2020 level of 9.15%.

Working capital loan interest rates for foreign and mixed-ownership banks saw the largest decrease, falling by 89 bps to 5.87% in November 2021. This was followed by Regional Development Banks (BPDs), which saw a decrease of 48 bps to 9.74%.

Loan interest rates for working capital in the national private banks group also decreased by 44 bps to 9.26%, while the State-Owned Banks (Bank BUMN) group saw a decrease of 33 bps to 8.44%.

Working capital credit in the banking sector reached Rp 1.48 quadrillion in November 2021. This figure represents a growth of only 2.59% compared to the end of 2020. The manufacturing industry received the largest disbursement, reaching Rp 240.79 trillion or 16.23% of the total working capital credit.