BI Rate Increases, Here’s the Impact on My Money Investment Instruments – 25 minutes ago

Jakarta, CNBC Indonesia Bank Indonesia (BI) officially raised the benchmark interest rate by 25 basis points to 6%, from the previous 5.75% since January 2023. This policy is one of BI’s strategies to strengthen the rupiah exchange rate and control the inflation rate.

This decision is predicted to have a positive impact on the investment climate. This is because an increase in interest rates will usually be followed by an increase in the Guarantee Interest by the Deposit Insurance Corporation (LPS). It is predicted that the increase in Commercial Bank Interest will be 4.5% from the previous 4.25% and the People’s Economic Bank (BPR) Interest will be 7% from the previous 6.75%.

Head of Marketing for BPR Deposits by Komunal Vera Rosana said that if the LPS Guarantor Interest increases in the near future, then people will be more motivated to invest.

“If the prediction of an increase in LPS Guarantee Interest is true in the near future, it will be a motivation for people to increase their savings in banks, because they can get higher interest, especially public savings in the form of deposits,” said Vera in a written statement, Friday (27/10/2023).

If this prediction is realized, the interest on BPR deposit profits will be higher than the Bond Return Coupon, the majority of which is around 3 years. This calculation assumes that the public had bought bonds before the BI increase. Vera believes that this will affect people’s interest in bond instruments, especially government bonds, because there are other investment instrument options with security and offering higher returns.

Apart from bonds, other investment instruments that are projected to be affected are mutual funds, especially Fixed Income Mutual Funds and Money Market Mutual Funds. The reason is, BPR deposit interest will be very competitive with the RDPT/RDPU return rate which can provide an average profit of around 7% – 10% per year.

To overcome the impact of unpredictable changes in the BI rate, people can manage investment portfolio risks and diversify.

“The best solution is to diversify, don’t put your eggs in one basket. “Because there is no greatest investment instrument, what is great is how people manage the risks of the investigative instruments they own,” he explained.

Vera also provides another option to the public, namely investment diversification with BPR Deposits. Apart from providing very competitive profits compared to other low-risk instruments, BPR deposits can provide a more certain level of profit.

Profits of course depend on the interest on the deposit chosen. The security of BPR deposits is guaranteed because they have received guarantee protection from LPS of up to IDR 2 billion per customer per bank.

For this reason, people no longer need to be confused if they want to diversify their investment into BPR deposit products. The DepositoBPR by Komunal application is now available as a marketplace application that provides special BPR deposit products, and there are more than 200 selected BPRs throughout Indonesia.

By using the DepositoBPR by Komunal application, people can easily diversify into savings products with guaranteed security and high profit potential like investment products. That way, people can easily diversify and experience a more practical experience in placing deposits in hundreds of BPRs with just one registration via the application.

“The public also doesn’t need to worry because all BPRs are members of the LPS guarantee, so they are safe and offer high deposit interest in accordance with LPS regulations,” concluded Vera.

[Gambas:Video CNBC]

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