28/10/2023. Indonesian banking is believed to be in a fairly resilient condition amid the challenges of unstable global economic conditions.
This may be seen in the history of Indonesian banking, which have weathered several economic crises throughout time.
Royke Tumilaar, President Director of PT Bank Negara Indonesia (Persero) Tbk, stated that strong capital and solid risk management are Indonesian banking's major assets in anticipating various threats of global economic instability.
“The Indonesian banking sector is quite resilient because it has gone through many crises so we have learned a lot and are very ready to face the current global economic situation,” he said at the BNI Investor Daily Summit 2023, Jakarta, Wednesday. (25/10/2023).
Royke said that Bank Indonesia (BI) had raised the benchmark interest rate to 6%, and banking did not necessarily increase lending rates.
This is due to the ability of banks to project the trend of future interest rate movements.
Banking can also ensure that the qulity of bank loans remains stable.
"I believe that this high interest rate is not new; the public has been aware of it since the crisis began last year. BI has been holding back long enough, not raising it. The rising trend in interest rates is not an issue because it was anticipated,” said Royke.