House Commission XI and Himbara Align Perceptions on Banking Industry Needs

Commission XI of the Indonesian House of Representatives (DPR RI) and the Association of State-Owned Banks (Himbara) are seeking to align perceptions regarding the needs of the national banking industry. Commission XI Chairman Mukhamad Misbakhun stated that the commission will hold a meeting with the Financial System Stability Committee (KSSK) to discuss banking liquidity, following its meeting with Himbara. “It must be synchronised, perceptions must be aligned, what the needs of the banking industry, especially Himbara, are, what the liquidity policy from Bank Indonesia (BI) is like, and what the issue of undisbursed loans looks like according to central bank and banking supervisory data,” Misbakhun said at the Parliament Complex in Jakarta on Monday. Commission XI held a closed-door hearing with the board of directors of Himbara, discussing the Excess Budget Balance (SAL) funds and bank credit distribution. Misbakhun revealed that during the meeting, the commission listened to Himbara’s needs, particularly regarding the SAL funds that have been re-placed by the Ministry of Finance. “We want to hear what Himbara’s needs are regarding the SAL, we want to hear specifically what the issues are in Himbara’s credit distribution related to the SAL,” Misbakhun said. He noted that credit distribution by banks will have a positive impact on national economic growth. “The push from the SAL funds certainly has an impact on economic growth,” Misbakhun stated. Regarding the closed-door nature of the meeting, Misbakhun explained it was to ensure that information requiring verification or synchronisation with other parties, or information that is not yet final, does not spark unnecessary debate. On 29 June 2026, the Ministry of Finance decided to re-place state cash funds amounting to Rp281 trillion in Himbara member banks until the end of December 2026. Additionally, the ministry has prepared a standby fund of Rp100 trillion that can be used if banks require additional liquidity. “The government’s funds in banks will be returned, the Rp281 trillion will be returned and extended until the end of December 2026. In addition, there is an extra Rp100 trillion as a standby in case it is needed,” said Deputy Minister of Finance Juda Agung. He detailed that the government had previously withdrawn Rp110 trillion in SAL funds in June 2026 from the remaining placement of Rp281 trillion. Now, the funds have been returned to the banks, bringing the total placement back to Rp281 trillion, which will be maintained until the end of the year. Beyond that, an additional standby fund of Rp100 trillion has been prepared, currently held at Bank Indonesia (BI). Thus, the total funds that can be placed in banks could reach Rp381 trillion. Juda expressed hope that the additional liquidity from the state treasury would help maintain credit growth at a double-digit level.