Bank Indonesia (BI) appreciates the reduction in the prime lending rate for bank loans in early 2021.

"Alhamdulillah, the prime lending rate is already single digit. Although we still hope that we can go down further, "Bank Indonesia Governor Perry Warjiyo said in Jakarta, Tuesday (20/4).

Perry said that the cut in lending rates reached 171 basis points as of February 2021. The deepest decline occurred in state-owned banks, reaching 266 basis points to 8.7%.

"Based on the segment, the deepest decline occurred in microcredit which reached 346 basis points," he explained.

Furthermore, the position of loan interest rates for this segment is still the highest, while for others, loan interest rates for the mortgage segment fell 194 bps to 8.19%, non-mortgage consumption 193 bps to 8.25%, corporations 139 basis points to 8, 26%, and retail 136 bps to 8.84%.