Bank Indonesia has kept its BI Rate at 5.75%, raised the Deposit\nFacility rate to 5% and announced an easing of banks\u2019 reserve\nrequirements. The measures are intended to add liquidity to the national\nbanking system.<\/p>\n
The central bank is also easing the statutory reserve requirement\n(Giro Wajib Minimum, or GWM) for conventional banks, lowering it to 7%\nfrom 9% in stages from 1 November 2026.<\/p>\n
For Islamic banks and Islamic banking units, the requirement will\nfall to 5.5% from 7.5%. It will first be reduced to 6.5% on 1 November\n2026 and then to 5.5% on 1 December 2026.<\/p>\n
The policy mix reflects an effort to support the rupiah while making\nmore room for economic financing. Exchange-rate pressures and September\ninflation of 3.28% mean that any interest-rate cuts require caution.<\/p>\n
Is industry liquidity still adequate?<\/strong><\/p>\n Bank Indonesia data show that credit grew by 13.26% year on year in\nSeptember 2026, outpacing third-party funds (DPK), which rose by 8.22%.\nHowever, the ratio of liquid assets to DPK increased to 24.08%, from\n23.04% in August.<\/p>\n This indicates that funding needs are rising, but there is no sign of\nan industry-wide liquidity shortage. Credit and DPK growth do not have\nto match exactly, as banks also hold liquid assets and have other\nfunding sources.<\/p>\n Nevertheless, if lending continues to grow faster than banks\u2019 ability\nto secure funding, they may be prompted to raise deposit rates or become\nmore selective in extending credit.<\/p>\n The issue is that deposit growth can come at a higher cost of\nobtaining funds.<\/p>\n Himbara deposits grow, with time deposits supporting Mandiri\nand BNI<\/strong><\/p>\n Fundraising at several Himbara state-owned banks continued to grow in\nAugust 2026. BNI recorded the highest DPK growth in the sample, at\n29.40% year on year, followed by Mandiri at 17.56% and BRI at\n13.65%.<\/p>\n However, overall deposit growth needs to be considered alongside its\ncomposition. At BRI, Mandiri and BNI, time deposits grew faster than\ntotal DPK, increasing their share of funding.<\/p>\n The sharpest increase was at BNI, where time deposits rose from\nRp238.14 trillion to Rp389.95 trillion. Mandiri\u2019s time deposits\nincreased from Rp339.34 trillion to Rp501.44 trillion.<\/p>\n The additional time deposits accounted for about 64.3% of Mandiri\u2019s\nDPK growth and 59.4% of BNI\u2019s. As time deposits generally offer higher\nreturns than current and savings accounts, this shift could increase\nfunding costs. The actual effect needs to be verified against each\nbank\u2019s deposit rates and interest expenses.<\/p>\n BSI showed a different pattern: time deposits grew more slowly than\ntotal DPK, increasing the share of its current and savings accounts. In\nBTN\u2019s case, the decline in DPK needs to be considered alongside the\nseparation of BTN Syariah in December 2025 and whether the reporting\ncoverage is comparable before it is interpreted as customers moving\ntheir funds.<\/p>\n Smaller banks pay more<\/strong><\/p>\n Data from the Indonesia Deposit Insurance Corporation (LPS), cited by\nBisnis Indonesia, show that deposit rates at small and medium-sized\nbanks rose in August 2026.<\/p>\n Large banks have transaction networks and customer ecosystems that\nhelp them attract current and savings deposits. Some smaller banks rely\nmore heavily on time deposits and competitive rates.<\/p>\n As a result, deposits may still grow, but at a higher cost. This can\nput pressure on profit margins, although banks may still be able to\nmaintain liquidity.<\/p>\n High interest rates do not, however, automatically indicate\ndifficulty meeting customer withdrawals. Nor does the data prove that\nfunds have moved directly from smaller banks to Himbara banks.<\/p>\n BI makes room for funding while continuing to support the\nrupiah<\/strong><\/p>\n The Deposit Facility is where banks place funds at Bank Indonesia; it\nis distinct from customer deposits. Raising its rate helps support the\nshort-term interest-rate structure and does not automatically increase\nall retail deposit rates.<\/p>\n Meanwhile, the scheduled reduction in the GWM for conventional banks\nmeans the additional liquidity available to each bank may vary.<\/p>\n Liquidity support also needs to be accompanied by the distribution of\nfunds between banks. Deposit growth at large banks does not necessarily\nimprove access to funding immediately for other lenders that need\nit.<\/p>\n From an analytical perspective, BI is seeking to support credit\nfunding while preserving the rupiah\u2019s appeal. If currency and inflation\npressures ease, there may be room for further easing. If they intensify,\nmaintaining or raising rates remains possible.<\/p>\n For banks, the next question is whether the additional liquidity can\nease competition for funding and support productive lending. Lending\nrates may not fall immediately, as banks still have to consider funding\ncosts\u2014which remain relatively high\u2014borrower risk and the need to protect\nprofitability.<\/p>\n GWM easing welcomed<\/strong><\/p>\n The chief executives of state-owned Himbara banks have welcomed Bank\nIndonesia\u2019s decision to ease the statutory reserve requirement,\nannounced at its October 2026 Board of Governors Meeting.<\/p>\n Anggoro Eko Cahyo, President Director of PT Bank Syariah Indonesia\n(Persero) Tbk (BRIS), welcomed the central bank\u2019s policy, saying the GWM\neasing would give the bank greater room to grow.<\/p>\n \u201cI certainly welcome it, because it gives us more flexibility. We\nhave needed that flexibility to keep growing,\u201d Anggoro said after the\nfourth CEO Lecture at Perbanas Institute in South Jakarta on Wednesday\n(28 October 2026).<\/p>\n PT Bank Tabungan Negara (Persero) Tbk (BBTN) also welcomed the\nreduction. BTN President Director Nixon L.P. Napitupulu said the\nadditional room under the GWM could be used to extend credit.<\/p>\n \u201cOf course we\u2019re happy \u2014 that money can be used for lending,\u201d Nixon\nsaid after a focus group discussion entitled \u201cBTN Transformation:\nBuilding Synergies for Sustainable Business Growth\u201d in Bandung, West\nJava, on Friday (23 October 2026).<\/p>\n He estimated that a 2% reduction in the GWM could provide BTN with an\nadditional Rp6 trillion to Rp8 trillion in liquidity.<\/p>\n \u201cMy estimate is that each 1% of GWM represents a maximum of around\nRp4 trillion for BTN. So if we can benefit from 2%, it could be between\nRp6 trillion and Rp8 trillion. But I\u2019ve asked the treasury team to\ncalculate the precise impact,\u201d Nixon said.<\/p>\n Another state-owned lender, PT Bank Negara Indonesia (Persero) Tbk\n(BBNI), said the additional liquidity from the GWM easing could support\nbanks\u2019 capacity to provide financing, provided it is accompanied by\nprudent lending and adequate risk management.<\/p>\n BNI Corporate Secretary Okki Rushartomo said the bank plays a role in\nsupporting economic activity by financing businesses and productive\nsectors.<\/p>\n \u201cThrough quality lending and cooperation with the government,\nregulators and Himbara members, BNI will continue to support financing\nfor productive sectors and the national development agenda,\u201d Okki said\nin a statement on Friday (23 October 2026).<\/p>\n Hery Gunardi, chairman of the Association of National Banks\n(Perbanas), also said the GWM reduction could boost market liquidity.\n\u201cFirst, we welcome Bank Indonesia\u2019s policy to reduce the GWM,\u201d he told\nCNBC Indonesia on Wednesday (21 October 2026).<\/p>\n Hery, who is also President Director of PT Bank Rakyat Indonesia\n(Persero) Tbk (BBRI), said the reduction would affect banks\u2019\nintermediation function and improve liquidity conditions, as reflected\nin the loan-to-deposit ratio (LDR). \u201cThe impact will be an increase in\nbank lending and an improvement in the LDR,\u201d he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/liquidity-eased-which-banks-stand-to-benefit-most-1793249493",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}