BCA president director Jahja Setiaatmadja announced after a gathering event with Indonesian bankers association (IBI) and national banks association (Perbanas) here on Wednesday that the decision was taken so that the cost of fund the bank must pay will not keep swelling.
On the other hand, he added, Bank Indonesia in the last one year had always maintained its reference rate at 7.5 percent.
"The bank has to pay 9.0 percent interest, while it will only receive 7.5 percent through Bank Indonesia Certificate (SBI). So, we must reduce the rate," he explained.
He noted that BCA had also planned to cut the interest rate for deposits above Rp25 billion, which is the banks largest deposit package, again to 8.75 or 8.5 percent in September.
Referring to BCAs third fund composition, the contribution of deposits is still recorded at around 22 percent, while the rest 78 percent is from transactional accounts (Giro and CASA savings).
Until the first semester this year, BCA had collected Rp421.2 trillion in third funds, showing that the cut in the interest rate will not as yet reduce the cost of fund BCA should bear.
"Yes. We still have small deposits," he pointed out.
For deposits below Rp2 billion (one to three months), BCA provides an interest rate of 7.5 percent, while for deposits between Rp2 billion and Rp5 billion, it provides 8.5 percent, and for deposits between Rp5 billion and Rp25 billion, it provides 8.75 percent, he added.(*)