Extension of SAL Placement in Banks: Economist Says It Could Encourage Lower Lending Rates

Jakarta, VIVA – The government’s decision to extend the placement of IDR 200 trillion in SAL funds in Himbara banks until September 2026 is considered to have a positive impact on the national economy. This is because it can ultimately contribute to strengthening the trend of declining lending rates.

The Chief Economist of Bank Mandiri, Andry Asmoro, believes that the placement of surplus budget (SAL) funds in Himbara member banks can essentially ease liquidity competition, especially among large banks, particularly as liquidity demand increases leading up to Eid or other major celebrations.

“If we look at the positive side of extending the SAL fund placement, it should ultimately encourage a decrease in lending rates,” said Andry Asmoro, also known as Asmo, in Jakarta, quoted on Thursday, February 26, 2026.

According to him, when liquidity competition eases, this will have an impact on reducing the cost of funds, which can then encourage a decrease in lending rates.

He said that historical trends show that the net interest margin (NIM) of banks has gradually begun to decline, so lending rates are likely to adjust.

“But perhaps, in my opinion, the decrease in lending rates will not be as large as the decrease in the BI-Rate due to its inelasticity,” he said.

Regarding credit growth, the easing of liquidity through the placement of SAL funds is also believed to provide space for banks to push for credit growth again.

The credit growth of the banking industry this year is projected to be in the range of high single digits to low double digits, at around 9-11 percent, according to projections by the Bank Mandiri economic team.

Previously, the Minister of Finance, Purbaya Yudhi Sadewa, decided to extend the period of government fund placement of IDR 200 trillion in banks for another six months after the maturity date on March 13, 2026.

With this, according to Purbaya, banks do not need to worry about losing liquidity because the government will continue to support liquidity in the market. An evaluation of this policy will be carried out again in September. This policy also encourages a decrease in deposit and lending rates.

According to Bank Indonesia (BI), the decrease in the BI-Rate by 125 basis points (bps) during 2025 and the expansion of BI’s monetary liquidity have had a significant impact on reducing interest rates in the money market.