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Digital Bank Deposit Interest Rates After BI Rate Drop: From Bank Jago To Krom Bank

Bank Indonesia (BI) has decided to lower its benchmark interest rate to 5.50%. What about the condition of the deposit interest rate in digital banks which is considered high? As is known, BI has lowered its benchmark interest rate by 25 basis points to 5.50% based on the Board of Governors Meeting (RDG) for the period of 20-21 May 2025. In the announcement of BI's interest rate at that time, the central bank also lowered the Deposit Facility interest rate to 4.75% and the Lending Facility interest rate remained at 6.25%. The Deposit Insurance Corporation (LPS) also decided to cut the guarantee interest rate by 25 basis points for deposits in rupiah. Meanwhile, the guarantee interest rate for foreign currency deposits in commercial banks was maintained. Thus, the guarantee interest rate for rupiah deposits in commercial banks became 4.00% and BPR became 6.50%. Meanwhile, the guarantee interest rate for foreign currency deposits in commercial banks remained at 2.25%. Meanwhile, amidst the dynamics of declining benchmark interest rates, a number of digital banks have set high interest rates on savings, especially deposits, in order to attract customer funds. 

PT Bank Jago Tbk. (ARTO) for example offers deposit products with interest rates of up to 6.5% per year. Then, PT Allo Bank Tbk. (BBHI) offers deposit interest rates of up to 7.5% to its customers. In fact, PT Bank Amar Indonesia Tbk. (AMAR) offers deposit interest rates of up to 9% per year for a period of 3 years to customers. Meanwhile, a number of digital banks have not yet planned to lower their benchmark interest rates amidst the BI rate reduction policy. Bank Amar's SVP Finance David Wirawan explained that so far there have been no plans to lower deposit interest rates, because the company has previously measured the level of profitability. "Currently there has been no adjustment to interest rates because in terms of credit, we have measured NPL and profit, so interest rates are not a concern. If the cost of funds [CoF] can still be absorbed, we will stay," he said some time ago. Chairul Tanjung's digital bank, Allo Bank, also has no plans to adjust interest rates in the near future. Allo Bank President Director Indra Utoyo explained that this decision took into account the still challenging macroeconomic conditions, including high liquidity pressures and increasingly tight competition for third party funds (DPK). "At this time, we have no plans to adjust deposit interest rates, considering the still high liquidity pressures and quite tight DPK competition," said Indra. 

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Tag: Bank Indonesia Bank Jago Digital Bank Krom Bank