Jakarta: President Joko "Jokowi" Widodo said national banks should be prepared to face foreign competitors. He intrsucted them to srengthen their payment system and adopt digital technologies.
He also urged banks and other financial service providers to strengthen their cooperation. In addition, he also asked national banks to lower their loan interest rates.
"Interest rates in other countries have gone down. Key rates of Bank Indonesia (BI) have been lowered. Our commercial banks have not done the same. I am waiting for this," Jokowi said at the Indonesia Banking Expo 2019, Jakarta on Wednesday, November 6, 2019.
Finally, Jokowi also advised related stakeholers, especially the Financial Services Authority (OJK) to provide incentives and disincentives. According to him, regulations must be simple but provide incentive and disincentives.
"With the support of BI and OJK, the targets we have formulated can be quickly achieved. I hope this meeting will produce concrete steps," he explained.
Last month, the Board of Governors of Bank Indonesia (BI) agreed to lower the BI 7-day Reverse Repo Rate by 25 basis points (bps) to 5.00 percent. In addtion, Deposit Facility (DF) rates and Lending Facility (LF) rates were lowered 25 bps to 4.25% and 5.75% respectively.