"The steps include maintaining the IDIC guarantee interest rate at a level that still provides room for deposit interest rates to be at a low level, so that loan interest rates can continue the current downward trend. These efforts should be made while taking into account the development of financial system stability and banking liquidity," he noted in a statement here on Saturday.
During the pandemic, the IDIC had lowered the guarantee interest rate to its lowest level in history.
A reduction in the guarantee interest rate is expected to help banks reduce the cost of funds, which in turn will trigger a decrease in loan interest rates.
"Credit interest rates for consumption have fallen to 10.6 percent, while it is around 8.85 percent for working capital, and 8.5 percent for investment. According to our monitoring, the graph continues to decline from month to month in a row," Sadewa noted.
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This is also in line with the central bank's policies and in strong coordination with all members of the Financial System Stability Committee (KSSK) to create financial conditions that can support economic growth.
"We will continue to maintain this, so that the downward trend in interest rates can continue. The most important aspect is that money supply in the financial system is sufficient," he said.
In supporting the national economic recovery, the IDIC has also extended the relaxation period for late payment of guarantee premiums to banks participating in the IDIC guarantee until 2022.
This policy was implemented to provide opportunities to banks to manage their liquidity optimally.
"The relaxation in fines for late payment of premiums to participating banks will be extended until the end of 2022 to support the national economic recovery. The impact is that banks can use their funds first for cashflow management,” he explained.
Moreover, the IDIC had made several breakthroughs in 2021, including the development of a Single Customer View (SCV) System that will accelerate the payment of guarantee claims as well as the development of an Integrated Core System (ICS) that will optimize the digitization of work processes at IDIC.
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Translator: Katriana
Editor: Rahmad Nasution
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