Additional Rp100 Trillion Fund Injection to Banks by Purbaya, OJK's Response
REPUBLIKA.CO.ID, JAKARTA – The additional government funding of Rp100 trillion to the banking sector is seen as a measure that will ease liquidity while suppressing interest costs. The Financial Services Authority (OJK) views this policy as capable of accelerating the decline in interest rates felt by the public. OJK’s Executive Head of Banking Supervision, Dian Ediana Rae, stated that the Ministry of Finance’s initiative provides room for banks to lower funding costs, including reducing special rates for large depositors.
“I welcome it. The fiscal policy from the Finance Minister (Purbaya Yudhi Sadewa) helps with liquidity. Secondly, the fund injection will suppress interest costs. Now, special rates have already significantly declined,” said Dian when met after the oath-taking ceremony at the Supreme Court Building, Jakarta, on Wednesday (25/3/2026).
According to her, the looser liquidity conditions make competition among banks to attract cheap funds less intense than before. This is important for accelerating the transmission of the benchmark interest rate policy to the banking sector.
“Thus, the tendency to follow the BI rate can be achieved more quickly,” she said.
On the other hand, the government-placed funds also have the potential to be used by banks to purchase Government Securities (SBN). This step is seen as helping state financing while curbing the rise in bond yields.
Nevertheless, Dian emphasised that SBN purchases are only temporary. The main focus of banking remains on lending to the real sector.
“That’s just a temporary investment. If left idle, it’s better to invest it. However, the ultimate goal of banks is to provide credit,” she said.
She explained that SBN yields of around 6 percent are still below lending rates that can reach 9–10 percent. Therefore, when credit demand increases, banks will redirect their funds back to financing.
“If demand is high, it can be liquidated. So, temporarily, it’s fine,” said Dian.