Jakarta. State-owned Bank Negara Indonesia (BNI) CEO Royke Tumilaar said the recent interest rate cut by the Federal Reserve (The Fed) will support the bank’s efforts to drive economic growth in Indonesia.

Royke acknowledged that fluctuating interest rates remain the primary challenge for the banking sector, both domestically and internationally. However, he expressed optimism following The Fed's decision to lower the federal funds rate (FFR) by 50 basis points, seeing it as a positive development for the banking industry to continue promoting economic growth without significant interest rate-related hurdles.

“The banking sector always faces challenges with interest rates. But with the recent rate cuts, there shouldn’t be any major issues,” Royke said at a press conference during the BNI Investor Daily Summit 2024, themed "Accelerating Resilient Growth," held at BNI Tower in West Jakarta on Monday.

B-Universe Media Holdings and BNI will hold its annual investment forum at the Jakarta Convention Center (JCC) on Oct. 8-9. The two-day 2024 BNI Investor Daily Summit will zero in on critical issues related to Indonesia’s economy. As many as 3,000 people are expected to take part in the forum that is set to be launched by President Joko “Jokowi”. 

Indonesia’s Largest Investment Forum to Return Next Week

Despite global uncertainties, Royke remains confident that BNI will maintain its strong position, attributing the bank’s success to continuous innovation and its ability to remain a competitive partner for investors.

BNI views the banking sector as playing a vital role in accelerating resilient economic growth. By focusing on product and service innovation, the bank is committed to delivering top-notch services to customers while contributing to Indonesia’s broader economic transformation.

Royke pointed out that advancements in technology, particularly artificial intelligence (AI), will pose new challenges for the banking industry. Nonetheless, he expressed confidence that BNI could navigate these challenges by staying committed to supporting its customers across all economic conditions.

“AI and other technological developments present challenges, but BNI remains dedicated to helping our customers thrive in any economic climate,” he said.

Meanwhile, BNI reported a net profit for the first half of 2024. The publicly traded company, under the ticker BBNI, achieved a net profit of Rp10.69 trillion in the first half of 2024, a slight increase of 3.8 percent compared to the same period last year. However, BNI's net interest income fell by 7.4 percent to Rp 19.07 trillion during this period.

As of the first half of 2024, BNI’s loan disbursement reached Rp 726.98 trillion, an 11.7 percent year-on-year increase from Rp 650.77 trillion in the same period last year. Additionally, BNI’s total assets grew by 4.6 percent, reaching Rp 1,072.45 trillion, up from Rp 1,025.09 trillion the previous year.

Click on this link to find out more about the 2024 BNI Investor Daily Summit.