GM 1 – SBM ITB
KOMPAS (Saturday March 19th 2016)
Suku Bunga, Tak Hanya BI Rate
This article discuss about the phenomenon of the declining BI rate for this last 3 months (January until March 2016).
On August 29th 2013, BI rate increasing to 7%, and then increase again on September 12th 2013 to 7.25%. The increase trend keeps going on November 12th 2013 by 7.5% and last increase to 7.75% on November 18th 2014. This phenomenon was caused by the unstable of global economic, including The Fed plan to stop their stimulus in bond purchases. As US economic condition get better, the fed have a plan to increase their risk free which almost zero. The step that The ...view middle of the document...
The low number of export in Indonesia was the result of decreasing number of global demand. This decreasing number of demand resulted the decreasing number of profit. This may cause the exporter to gain loss and to make bank loan was impossible due to the high number of credit interest rate. Since a lot of Indonesia’s business bankrupt, many products from other country with very competitive price come to Indonesia (import increasing). Their price was quite low and the demand for lower price product increasing due to the decreasing of buying power. This condition affects the neraca perdagangan (become deficit).
Nowadays, global economic condition is better, Indonesia’s economic condition also in a better condition. This is a good sign for BI to decrease BI rate, hoping that saving interest rate and credit interest rate will follows.
One of the factors that affect credit interest rate is saving interest rate, because bank will impose saving interest rate to credit interest rate. So the higher saving interest rate, the higher credit interest rate.
Mostly, big account in bank is come from APBN, APBD, BUMN, and BUMD. The owners of this big account usually wants high rate of saving interest. So in order to cover this high number of saving interest, bank didn’t decrease its credit interest rate even though BI rate decreasing. In other words, the decreasing of BI rate is wasted.
There are several actions that could be take to make credit interest rate follow BI rate. First, decrease GWM (Giro Wajib Minimum). The decreasing in this number will allow bank to keep more cash on hands (more liquid), so they can lend their cash with lower credit interest rate.