The increase in the outstanding yield and volume of SRBI is\nmagnifying liquidity pressures and tightening competition for rupiah\nfunds.<\/p>\n
Jakarta (ANTARA) - Perbanas Chairman Hery Gunardi views the\nattractiveness of Bank Indonesia\u2019s Rupiah Securities (SRBI) as creating\ntwo pressures for the banking sector: tightening competition for fund\naccumulation and absorbing liquidity, which could potentially reduce\nintermediation capacity.<\/p>\n
He explained that the rising appeal of SRBI is tightening competition\nfor fund accumulation, thereby driving adjustments in deposit pricing.\nThis condition is making market liquidity increasingly tight.<\/p>\n
\u201cThe increase in the outstanding yield and volume of SRBI is\nmagnifying liquidity pressures and tightening competition for rupiah\nfund accumulation,\u201d said Hery, who is also the President Director of\nBRI, during the Mid Year Economic Outlook 2026 event in Jakarta on\nFriday.<\/p>\n
Based on Bank Indonesia (BI) data, total outstanding SRBI at the end\nof May 2026 reached Rp979.88 trillion, a significant increase from\nRp730.90 trillion at the end of December 2025. Of this total, bank\nholdings amounted to Rp677.89 trillion, while non-bank holdings stood at\nRp260.44 trillion, comprising Rp43.95 trillion from residents and\nRp216.48 trillion from non-residents.<\/p>\n
\u201cThis significant growth in outstanding volume shows that SRBI is\nincreasingly becoming a competitive placement instrument, both for banks\nand non-bank investors,\u201d Hery said.<\/p>\n
BI has been strengthening SRBI yields across all tenors following a\n100 basis point (bps) increase in the BI-Rate during May-June 2026. The\ncentral bank took this step to attract foreign portfolio investment\ninflows into domestic financial assets, thereby helping to strengthen\nthe rupiah exchange rate.<\/p>\n
According to the money market transaction yield curve publication,\nthe weighted average yield of SRBI in the secondary market across all\ntenors tended to increase on Friday (19\/6). In detail, the 1-month SRBI\ntenor was recorded at 6.95 percent, the 3-month tenor at 7.24 percent,\nand the 12-month tenor at 7.67 percent.<\/p>\n
Alongside the 100 bps BI-Rate increase, Hery noted that this\ncondition will structurally increase the repricing pressure on\nthird-party funds (DPK). The recent rise in deposit rates is also\nexpected to compress the banking industry\u2019s net interest margin\n(NIM).<\/p>\n
\u201cThis means that for banks, the cost of fund will tend to rise. If\nthe cost of fund or cost of capital increases, then in conditions like\nthis, discipline becomes the keyword. We are now entering an era of\nselective growth,\u201d Hery said.<\/p>\n
Although the banking industry remains relatively solid overall, Hery\nassessed that several pressures are beginning to emerge. DPK growth is\nstarting to slow, NIM is compressing, and the capital adequacy ratio\n(CAR) has slightly declined compared to the previous month.<\/p>\n
Amid tightening liquidity, he stressed the importance of asset and\nliability management discipline, as well as consistently building\nlow-cost funds in the form of savings and current accounts. These two\naspects, according to Hery, are foundations that banks must not\nneglect.<\/p>\n
Hery added that banks also need to implement more selective and\nproductive credit distribution strategies by prioritising productive\nsectors. This should be done while maintaining prudential principles,\nsetting sectoral risk appetites aligned with current macroeconomic\nconditions, and building quality credit pipelines through a more\ncomprehensive ecosystem approach.<\/p>\n
He also emphasised the importance of proactive asset quality\nmanagement through strict underwriting processes, more granular early\nwarning systems, and collection readiness should collectability quality\nbegin to decline. Furthermore, accelerating digital transformation and\nutilising data analytics are no longer just medium-term strategies but\nhave become business necessities for the banking industry today.<\/p>\n
Banking industry credit in May 2026 grew by 11.51 percent\nyear-on-year (yoy), higher than the 9.98 percent yoy recorded in April\n2026. Meanwhile, third-party funds (DPK) grew by 13.47 percent yoy, and\nthe liquid assets to DPK ratio stood at 24.74 percent.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/perbanas-srbi-attractiveness-triggers-fund-competition-and-pressures-liquidity-1782485680", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }