To spur economic movement in line with the government and financial regulators' direction, PT Bank Tabungan Negara (Persero) Tbk cut interest by 270 basis points (bps).

Meanwhile, from the Basic Credit Interest Rate (SBDK) report published by Bank BTN on its official website, it is cutting interest in all of its credit segments. Prime Lending Rate for Home Ownership Loans (KPR) recorded the highest interest decline of 270 bps.

Plt. President Director of Bank BTN, Nixon LP Napitupulu, said that the reduction in interest rates was in line with President Joko Widodo's direction to declare 2021 as the year of national economic recovery. This decline also follows the BI 7-Day Reverse Repo Rate movement, which continues to fall to the level of 3.5%.

"We hope that this reduction in interest will help increase demand for credit, especially in the housing sector. Moreover, the housing sector has a multiplier effect on 174 other sectors. We hope that it can improve the national economy, "said Nixon in Jakarta, Friday (5/3).

Nixon added that improved liquidity followed by a decrease in Cost of Fund (CoF) supported the lower interest.

"We strive to maintain this positive performance so that we can offer affordable interest rates for our customers and debtors," said Nixon.

Bank Tabungan or BBTN recorded lower prime lending rates in the corporate credit, retail credit, and consumer credit segments, as shown on its official website.

In corporate credit, the prime lending rate decreased by 190 bps to 8% in February 2021 from 9.9% in December 2020. In the retail credit segment, BBTN cut interest by 165 bps from 9.9% in December 2020 

Then, in the consumer credit segment, the prime lending rate for mortgages was recorded to have dropped by 270 bps from 9.95% in December 2020 to 7.25% in February 2021. The prime lending rate for non-mortgage loans was cut by 250 bps to 8.25% in February 2021 from 11.25% in December 2020.