State-owned banks to increase rates

The Jakarta Post ,  Jakarta   |  Mon, 10/13/2008 4:51 PM  |  Business

PT Bank Mandiri and PT Bank Negara Indonesia are set to raise interest rates by 50 points on average.

The increase is introduced in line with Bank Indonesia's proposed 25 point-hike in the BI rate for both credit and deposit accounts to 9.5 percent.

The state-owned bank has pegged the deposit and credit rates to between 12 to 12.5 percent and 13 to 17 percent, respectively.

"This is the third raise Mandiri has implemented within this year," PT Bank Mandiri director Agus Martowardojo told Kompas.com on Monday.

The managing director for International and Treasury affairs of PT Bank Negara Indonesia, Bien Subiantoro, has also confirmed that PT BNI would be raising its interest rates by 50 points.

"Credit rates would range between 14 to 15 percent, whereas deposit rates would be pegged at around 10 to 12 percent," he said.

The BI rate has meanwhile been raised six times since last May. (amr)

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