Indonesian Bank Deposit Rates Climb Amidst Steady BI Reference Interest Rate

Indonesian Bank Deposit Rates Climb Amidst Steady BI Reference Interest Rate

Steady BI Reference Interest Rate

Despite the Bank of Indonesia (BI) maintaining its reference interest rate at 5.75% for eight consecutive months, the interest rates for bank deposits have seen a steady increase. This trend is evident in leading banks such as PT Bank Central Asia Tbk. (BBCA) and PT Bank Rakyat Indonesia (Persero) Tbk (BBRI). The BI’s reference interest rate has remained consistent since the Governor’s Council Meeting held from 20-21 September 2023. Prior to this steady period, the BI reference interest rate had seen a rising trend of 225 basis points from mid-2022 until early 2023.

Rising Deposit Interest Rates

Regardless of the stable reference rate, bank deposit interest rates have continued on an upward trajectory. BI data indicates that the one-month deposit interest rate for August 2023 was at 4.23%, a 5 basis points increase from July 2023, which stood at 4.18%. Year-to-date, the one-month deposit interest rate has risen 26 basis points.

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Adjustments by Leading Banks

According to Hera F. Haryn, BCA’s Executive Vice President of Corporate Communication & Social Responsibility, BCA has adjusted its Rupiah deposit interest rates three times gradually since January 2023. The current Rupiah deposit interest rates range from 2% to 4% depending on the tenor.

Similarly, BRI’s Corporate Secretary, Agustya Hendy Bernadi, mentioned that BRI conducts periodic reviews of interest rates. Throughout 2023, BRI has made adjustments ranging from 25-125 basis points for Rupiah or foreign currency deposits.

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Rupiah Deposit Interest Rates of Major Banks

Here’s a look at the Rupiah deposit interest rates offered by major banks in Indonesia:

• BCA: As of 16 August 2023, BCA’s lowest Rupiah deposit interest rate stands at 2% for a 12-month period, with the highest being 4% for a 3-month period.
• BRI: BRI’s lowest Rupiah deposit interest rate is 2.25% for a 1-month period, while the highest is 3% for a 12-month period.
• Bank Mandiri: PT Bank Mandiri (Persero) Tbk. (BMRI) has a minimum Rupiah deposit interest rate of 2.25% for a 1-month period, and the highest at 2.5% for a 12-month period.
• BNI: PT Bank Negara Indonesia (Persero) Tbk. (BBNI) has the lowest Rupiah deposit interest rate at 2.5% for a 3-month period, and the highest at 3% for a 12-month period.

Looking Ahead

While the reference interest rate remains steady, the consistent increase in bank deposit interest rates indicates a dynamic banking landscape in Indonesia. With leading banks making periodic adjustments to their deposit interest rates, customers are likely to continue witnessing fluctuations in the rates offered. This trend underscores the importance of staying updated on the latest interest rates to make informed financial decisions.

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