Foreign Bank Consumer Credit Interest Rates Above 23% as of June 2022

Bank lending interest rates recorded a decline throughout the first half of 2022. During this period, Bank Indonesia (BI) maintained its benchmark interest rate, the BI7DRR, at 3.5%, and the decrease in credit risk, along with the recovery of the national economy, managed to drive down the interest rates on general bank consumer credit.

BI data shows that the average interest rate on general bank consumer credit during the first half of 2022 fell by 25 basis points (bps) to 10.28% per annum in June 2022, compared to the end of last year's level of 10.53%.

Three groups of banks—foreign/mixed banks, Regional Development Banks (BPDs), and national private banks—set consumer credit interest rates above the average for general banks. Meanwhile, the consumer credit interest rate for state-owned banks (Bank Persero) was below the general bank average.

Foreign/mixed banks set the highest consumer credit interest rate, reaching 23.22% per annum, as shown in the graph. In the first half of this year, the interest rate on foreign bank credit fell by only 1 bps compared to the end of December 2021.

The average consumer credit interest rate for BPDs fell by 21 bps to 10.88% per annum in June 2022 compared to December 2021. Meanwhile, the average interest rate on credit from national private banks actually increased by 19 bps to 10.32% per annum in June of this year compared to the end of last year.

Finally, the interest rate on Bank Persero credit fell by 61 bps to 9.53% per annum in June 2022 compared to December 2021.