Jakarta, hitclubapk3 Indonesia
—
Minister of Finance
Ancient
Yudhi Sadewa wants
interest rate
credit in Indonesia could fall to the equivalent of
Malaysia
and Thailand.
According to him, with controlled inflation and solid economic growth, it is time for borrowing costs in the country to become cheaper so that economic competitiveness increases.
Purbaya said that the Indonesian economy remains strong amidst global uncertainty.Economic growth in the second quarter of 2025 reached 5.12 percent, the highest among G20 member countries.Meanwhile inflation was at 2.65 percent in September, which was also the lowest in this group.
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This condition, he said, illustrates an ideal balance between growth and price stability.
“Good inflation is not low but not high either. Not zero, but not 10. Yes, 2 to 3 is the ideal number for us,” he said at a Working Meeting with Committee IV DPD RI, Central Jakarta, Monday (3/11).
With stable inflation in the ideal range, Purbaya believes that the benchmark interest rate should be able to move to a moderate level, namely around 3.65 percent.From there, monetary policy transmission is expected to reduce credit interest rates to the range of 6 percent – 7 percent to be more competitive with neighboring countries.
He gave the example that credit interest rates in Malaysia are currently in the range of 5 percent-6 percent, while Thailand also applies a similar level.According to him, with appropriate adjustments to inflation conditions, Indonesia should be able to achieve the same borrowing cost efficiency.
“That’s not what I’m aiming for is that the loan interest rate must fall below that. Above that a little, at most 2-3 percent. If it is above 3.5 percent it should always be stable,” he said.
Purbaya is optimistic that if credit interest rates can be reduced to that level, business actors’ capital costs will be more efficient and investment can increase.He assessed that consistent policies in maintaining low inflation will strengthen the competitiveness of the national economy.
“This means that our competitiveness in terms of cost of capital can get better,” he said.
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(del/pta)
