JAKARTA (Yosefardi) – The Financial Service Authority (OJK) urges banks to cut loan rates as BI Rate has been cut to 7.25% in Jan. 14, 2015.

OJK Chief Commissioner Muliaman D Hadad said the banks have experienced lower costs of funds and have no problem with the liquidity issue.

OJK also urges banks to lower net interest margin (NIM) this year. The NIM jumped to 5.35% as at November 2015, from 4.24% in the same period of 2014.

Meanwhile the government is now discussing on increasing the utilization of subsidized micro credit loan program (KUR) allocated for Rp100 trillion this year.