Bank Indonesia Claims Banking Liquidity Remains Adequate

Bank Indonesia (BI) claims the resilience of banking liquidity remains secure. BI Senior Deputy Governor Destry Damayanti said this was reflected in the INDONIA rate, which represents interbank interest rates.

Destry explained that the INDONIA rate reached 6.62 per cent on 18 June 2026 before falling to 6.17 per cent on 16 July 2026. “The decline in INDONIA reflects easing pressure on liquidity demand in the interbank money market, so short-term funding needs can be met at lower cost. This condition indicates that money market liquidity remains adequate,” she said in a written statement on Friday, 17 July 2026.

According to Destry, this situation has been influenced by BI’s liquidity expansion strategy through various monetary instruments such as repos, swaps, and purchases of State Securities (SBN) on the secondary market. As of 16 July, BI’s liquidity expansion through monetary operations stood at Rp 837.11 trillion. Destry said the expansion strategy supports growth in primary money (M0), which has been maintained in double digits, at 12.8 per cent year-on-year at the end of June 2026.

“Bank Indonesia also continues intensive communication with the banking sector so that obstacles to liquidity distribution between banks can be resolved with well-managed risks,” Destry said. In addition, she said efforts to develop the money market continue in collaboration with market associations, banks, and other authorities.

Previously, Finance Minister Purbaya Yudhi Sadewa assessed that the indicators used by the Financial System Stability Committee (KSSK) to measure banking liquidity were inaccurate. He claimed the banking sector was experiencing liquidity problems, which is why the ministry decided to place excess budget funds (SAL) in state-owned banks in 2025.

“Even though many banks say liquidity is ample, and if you ask LPS, OJK, BI, and the Finance Ministry, they all say it’s ample, but their data is all wrong,” Purbaya said during a working meeting with Commission XI at the DPR building on Wednesday, 15 July 2026. He admitted he had asked the KSSK team to improve the indicators. However, as this had not yet succeeded, the government uses primary money or M0 growth as the indicator.