Indonesia to keep Rp281 trillion in state banks to support liquidity

In addition, the ministry has set aside an additional Rp100 trillion in standby funds that can be deployed if banks require additional liquidity, Deputy Finance Minister Juda Agung said on Monday.

“The government’s funds (Budget Surplus Balance/SAL) placed in the banking system will be returned. The previous Rp281 trillion will be reinstated and extended until the end of December 2026. On top of that, there is an additional Rp100 trillion in standby funds in case they are needed,” Agung told a press conference at the Parliamentary Complex.

The move was taken because the banking sector is still considered to require liquidity support to sustain lending. According to Agung, credit demand from businesses remains strong, making it important to ensure banks have sufficient liquidity.

Agung said the government had withdrawn Rp110 trillion from its deposits in June, reducing the balance before restoring the placement to Rp281 trillion, which will remain in banks through year-end.

The additional Rp100 trillion in standby funds is currently held at Bank Indonesia and can be deployed if lenders require extra liquidity, bringing the potential total placement to Rp381 trillion.

The government expects the liquidity support to help keep bank lending growth in double digits after credit expanded 11.5 percent year-on-year in May.

“Credit grew by 11.5 percent in May 2026, and we expect lending growth to remain in the double digits in the coming months. Therefore, it is essential that liquidity in the banking sector remains well maintained,” he said.

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Translator: Bayu Saputra, Kuntum Khaira