Prabowo asks Himbara to give 5 percent interest on people’s credit, this is an OJK note

Prabowo asks Himbara to give 5 percent interest on people’s credit, this is OJK’s note (Photo: Okezone)

JAKARTA – Financial Services Authority (FSA) responding to President Prabowo Subianto’s order for state-owned banks (Himbara) to provide people with credit with a maximum interest of 5 percent for a period of one year.

Chief Executive of OJK Banking Supervision, Dian Ediana Rae, said that this program is a sustainable business opportunity for the banking industry to reach low-income communities and unbankable groups. However, he reminded banks to continue to prioritize the aspect of prudence.

“Mempertimbangkan hal tersebut, bank perlu meningkatkan kualitas tata kelola dan manajemen risiko yang baik dalam menjalankan program dimaksud agar dapat menjadi program yang berkesinambungan sesuai dengan risk appetite dan expertise bank,” said Dian in a written statement, Jakarta, Sunday (17/5/2026).

In order to anticipate a potential spike in the ratio of non-performing loans (NPL) from this low interest program, OJK ensures that it will tighten supervision. OJK asks banks to actively carry out financial resilience simulations to maintain asset quality and capital adequacy.

“Dalam mengantisipasi potensi risiko kredit dari program tersebut, OJK mendorong penguatan pengawasan serta pelaksanaan stress test secara berkala untuk memastikan ketahanan permodalan dan kualitas aset tetap terjaga di berbagai skenario ekonomi,” explained Dian.

Apart from that, banks are required to establish adequate reserve posts and not ignore the principles of conventional credit analysis, namely 5C (Character, Capacity, Capital, Collateral and Conditions of Economy).

OJK will also continue to coordinate with the government so that distribution of people’s credit is right on target and does not disrupt the stability of the financial services sector.

Regarding the direction of banking interest rates in the long term, OJK presented data that the weighted average Rupiah credit interest rate as of March 2026 was at the level of 8.76 percent. This figure shows a downward trend when compared to the position in February 2026 (8.80 percent) and March 2025 (9.20 percent).