BANK Danamon chose not to increase KPR interest rates even though Bank Indonesia (BI) had raised its benchmark interest rate to 6.25 percent until the end.
Ivan Jaya, Consumer Funding & Wealth Business Head of Bank Danamon, said that currently his party is still paying attention to demand in the real estate market following the increase in the BI Rate.
“We are still paying attention to demand in the market. So we are not responding directly to the interest rate increase, because we are still aiming for consumer credit growth,” he told media crew at the Journalist Class event “Investment 101: Building Your Financial Future” in Jakarta, on Wednesday (8/5).
Ivan also revealed that currently the company is targeting double-digit growth in KPR credit distribution in 2024. This is because Indonesia’s post-Covid-19 credit growth for expansion needs and consumer needs remains maintained, especially due to fairly good infrastructure growth.
Meanwhile, Ivan explained that high interest rates made companies develop various strategies, one of which was a strategy for mortgages. This strategy is implemented so that liquidity is maintained and credit growth also increases.
“From KPR, the strategy in general is, number one, working with developers, then enlarging the secondary market, and collaborating with brokers,” explained Ivan.
Also read: Get ready! BTN Considers Increasing KPR Interest Rates
Apart from strategies for mortgages, Bank Danamon also has three steps to stay afloat in a situation of high interest rates.
Bank Danamon strives to provide an annual program, namely the consecutive Danamon Prize which is created to increase the growth of low-cost funds from the CASA side. Then, Danamon also complemented D-Bank Pro mobile banking, to make transactions easier. Apart from that, Danamon is also expanding customers from the affluent and emerging affluent segments, namely privileged and optimal customers.
According to Ivan, these three steps are one of the drivers for increasing capital so that the company can continue to develop with various types of financial solutions, including investment.
He further added, based on the results of the stress test carried out, the company’s situation was still under control even in a situation of high interest rates. In terms of credit worthiness, Bank Danamon continues to maintain the NPL non-performing loan ratio below 3 percent. (Z-8)
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