Top profitable Indonesian banks spur Jokowi’s call to rein in margins

Indonesian President Joko Widodo gestures as he talks during an interview at the Presidential Palace in Jakarta, Indonesia, February 1, 2023. REUTERS/Willy Kurniawan

JAKARTA (Bloomberg): Indonesian banks are making too much money, spurring calls from President Joko Widodo (pic) and the monetary authority to rein in their margins.

Bank Indonesia put out its latest rate transparency report last week, showing banks offering loan rates that are 4.75% more than the policy rate of 5.75%, while one lender has a spread of as much as 11.99%. The report is meant to encourage banks to offer more competitive and efficient rates to speed up economic growth.