Indonesia to cap SMV deposit interest rates to lower credit costs

The Indonesian government plans to limit the deposit interest rates requested by Special Mission Vehicles (SMV) under the Ministry of Finance. The proposed cap is set at 80 percent of the Bank Indonesia (BI) rate, matching the rate the government receives when placing funds in banks. Affected entities include PT Sarana Multi Infrastruktur (SMI), PT Penjaminan Infrastruktur Indonesia (PII), Pusat Investasi Pemerintah (PIP), LPEI, and Sarana Multigriya Finansial (SMF).

The primary objective of this policy is to reduce bank funding costs, which is expected to lower credit interest rates and accelerate economic growth by the second half of 2026.

Friderica Widyasari Dewi, Chairperson of the OJK Board of Commissioners, stated that deposit interest rates remain subject to market mechanisms. She noted that discussions regarding these rates are coordinated within the Financial System Stability Committee (KSSK) framework, involving the OJK, Bank Indonesia, the Indonesia Deposit Insurance Corporation (LPS), and the Ministry of Finance, with a focus on maintaining financial system stability while supporting national development.