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14 clusters · 43 sources · 63 days · First seen · Last updated

Categories: BUSINESS

Bank Indonesia holds rate as credit soars, yields rise

Entities: PT Bank Negara Indonesia Tbk · PT Bank Central Asia Tbk · PT Bank Mandiri Tbk · PT Bank Rakyat Indonesia Tbk · Bank Indonesia

Overview

Bank Indonesia kept its benchmark policy rate at 5.75 % after the July 21‑22 Governing Board meeting, citing support for the real sector and price stability. Total bank credit expanded 12.67 % YoY in June 2026 – the fastest since April 2024 – driven by a 24.9 % jump in investment loans and modest growth in working‑capital (8.9 %) and consumer loans (5.8 %). Broad‑money (M2) rose to Rp 10.4328 trillion, up 8.7 % YoY, while the central bank’s late‑June liquidity injection of roughly Rp 1 000 trillion eased the overnight interbank rate to 6.17 %.

The Financial Services Authority (OJK) highlighted undisbursed loan facilities of about Rp 2.5 quadrillion and signaled plans for mandatory green‑loan allocation targets. QRIS cross‑border transactions in Q2 2026 reached an inbound value of Rp 1.85 trillion, reflecting growing digital‑payment use by tourists.

Despite the credit surge, bank margins remain squeezed (industry net‑interest margin 2.19 % in April; BCA’s Q1 NIM 5.3 %). Market reaction to the unchanged rate was negative: the yield on the 10‑year sovereign bond climbed to roughly 7.35 %, and shares of major banks fell between 0.3 % and 7.8 %. Analysts say a rate cut is unlikely before 2027, leaving bank valuations subdued.

Timeline

  1. 1 day ago

    [BUSINESS] 4 sources
    Indonesia bond yields climb as Bank Indonesia keeps policy rate at 5.75%

    Bank Indonesia held its policy rate at 5.75% as 10‑year bond yields rose to 7.35%; credit grew 12.7% YoY but major bank stocks fell, with analysts saying a rate‑cut catalyst is needed.

  2. 5 days ago

    [BUSINESS] 16 sources
    Indonesia Bank Credit Surges to 12.7% YoY in June 2026

    Bank Indonesia says bank credit jumped 12.7 % YoY in June 2026, M2 hit Rp 10.43 trillion (+8.7 %), policy rate stayed at 5.75 %, and OJK eyes green‑loan targets.

  3. 11 days ago

    [BUSINESS] 13 sources
    Bank Indonesia reports expanding manufacturing sector and stronger business activity

    Bank Indonesia reports modest manufacturing expansion, higher business activity, monitors bank liquidity, while food reserves stay secure, crypto prices rise after US inflation dip, and wakaf assets hit Rp 30 t

  4. 19 days ago

    [BUSINESS] 3 sources
    Bank Indonesia sees June consumer confidence fall, retail sales hold up

    Bank Indonesia reported June 2026 consumer confidence fell to 117.8 but stayed optimistic, and forecast retail sales to contract only 0.8% month‑to‑month, aided by school holidays and holiday‑season demand.

  5. 20 days ago

    [BUSINESS] 3 sources
    Indonesia banks face squeezed profit margins as rates rise

    Indonesia’s bank profit margins fell to 2.19% in April 2026 after BI raised the benchmark rate to 5.75%, with higher operational costs and caution on loan‑rate hikes keeping pressure through 2026.

  6. 28 days ago

    [BUSINESS] 2 sources
    Indonesia's Deposit Insurance Agency reports banking sector resilience and strong state bank profits in 2026

    Indonesia's Deposit Insurance Agency reports rising deposits and high claim payouts, while state‑owned banks post strong profit and credit growth in early 2026, outpacing private BCA.

  7. about 1 month ago

    [BUSINESS] 9 sources
    Indonesia raises deposit guarantee rates to bolster banking stability

    LPS raised Indonesia's deposit guarantee rates to 3.75% (commercial banks) and 6.25% (BPR) from July 1 2026, amid BI rate hikes, to sustain banking confidence; deposits grew 13.4% YoY and special‑rate accounts

  8. about 1 month ago

    [BUSINESS] 4 sources
    Bank Indonesia raises policy rate to 5.75% as money supply surges double‑digit in May

    Bank Indonesia raised its policy rate to 5.75% and reported a 10.8% YoY rise in M2, credit growth of 10.8%, and a Rp 156.98 trillion SBN purchase to support liquidity and the rupiah.

  9. about 1 month ago

    [BUSINESS] 5 sources
    Bank Indonesia raises benchmark rate by 25 bps to 5.75% to support the rupiah

    Bank Indonesia raised its rate by 25 bps to 5.75% to defend the rupiah, marking its sixth hike in eight months and lifting corporate refinancing costs.

  10. about 1 month ago

    [BUSINESS] 10 sources
    Bank Indonesia lifts benchmark rate to 5.75%, sparking market rally and business response

    Bank Indonesia raised its rate to 5.75%, boosting the stock market, expanding SBN purchases, and drawing mixed reactions from business groups and economists over rupiah stability and loan costs.

  11. about 2 months ago

    [BUSINESS] 4 sources
    Bank Indonesia consumer confidence May 2026 stays optimistic despite dip

    Bank Indonesia’s May 2026 consumer confidence index held at 120.9, down from April, while current economic conditions fell to 112.2 and debt‑to‑income rose to 10.2%.

  12. about 2 months ago

    [BUSINESS] 3 sources
    Bank Indonesia hikes benchmark rate, triggering market and business concerns

    Bank Indonesia raised its benchmark rate to 7.5% in March 2024 and again to 5.5% in June 2026, aiming to stabilise the rupiah and curb inflation, while businesses warn of higher loan costs.

  13. about 2 months ago

    [BUSINESS] 3 sources
    Bank Indonesia launches weekly money‑market yield curve report

    Bank Indonesia started a weekly money‑market yield‑curve publication on 8 June 2026 to improve market transparency and policy transmission.

  14. 2 months ago

    [BUSINESS] 5 sources
    Bank Indonesia raises benchmark rate to 5.25% and signals gradual loan‑rate pass‑through

    Bank Indonesia lifted its benchmark to 5.25% to support the rupiah; experts expect loan rates to rise gradually over 3‑6 months, with limited immediate impact on borrowers.

Sources

antaranews.com · archynewsy.com · bandung24jam.republika.co.id · barbaraganz.blog.ilsole24ore.com · bisnis.liputan6.com · cari.republika.co.id · ceritaanda.viva.co.id · clovermedia.jp · cnbcindonesia.com · duta.co · economy.okezone.com · ekbis.harianjogja.com · ekbis.sindonews.com · en.antaranews.com · hnk-sibenik.hr · inews.id · insight.kontan.co.id · japon.embajada.gov.co · joglosemar.co.id · jpnn.com · katadata.co.id · keuangan.kontan.co.id · m.jpnn.com · matabangsa.com · mediaindonesia.com · memesita.com · minews.id · niaga.asia · okezone.com · paparazzi.com.ar · pemilu2024.harianjogja.com · politik.news.viva.co.id · ramenten.republika.co.id · republika.co.id · rmol.id · ruzka.republika.co.id · sorong.tribunnews.com · suarainvestor.com · sulselsatu.com · tnonline.com.br · us.en.news.viva.co.id · utusan.com.my · world-today-news.com