Mustaqim Adamrah, Jakarta – Bank Indonesia's key rate is yet to affect lending rates despite its drop by 300 basis points to 6.5 percent since late 2008, says the House of Representatives.

"Despite optimism prevailing in certain circles, in reality, the BI rate, which is currently 6.5 percent, has not affected bank loan interest rates that are still above 12 percent," House Speaker Agung Laksono said Friday in a speech he delivered at the plenary session.

"(As a result) lending rates remain high and have failed to positively impact the movement of the real sector, comprising small and medium businesses."

Thus, the House asked the banking sector to determine their actual lending rates in accordance with the BI key rate, Agung concluded.