Loan interest rates in Indonesia are currently the highest among ASEAN nations, the Indonesian Chamber of Commerce and Industry (Kadin) said. (Photo: Reuters) The average rate in Indonesia stands at 10.4 percent while that of the Philippines is 7.1 percent, Malaysia 4.9 percent, and Thailand 4.1 percent.
Vice Chairwoman of Kadin Indonesia for International Relations Shinta W Kamdani explained that this was due to the inefficient national banking system, resulting in operational costs (BOPO) reaching 83.09 percent.
The average BOPO in ASEAN banks is only around 30-40 percent.
She asked Indonesian banks to operate more efficiently given that the interest rate on bank loans has an influence on the movement of the industrial and business sectors as well as the country’s future economic growth./.
VNA
