Mandiri Economist Explains Positive Effects of Extending Rp200 Trillion Fund
Jakarta, CNBC Indonesia - Government funds placed in Bank Indonesia and then allocated to banks, amounting to Rp200 trillion, which were initially placed in September 2025, will mature in March 2026.
However, Minister of Finance Purbaya Yudhi Sadewa stated that the government has decided to extend the placement of these Rp200 trillion funds in domestic banks for another six months.
Chief Economist of Bank Mandiri, Andry Asmoro, said that PT Bank Mandiri (Persero) Tbk. (BMRI) welcomes this policy. He believes that the extension of the government’s Excess Budget Funds (SAL) will have a positive impact on banking liquidity.
“I believe that this extension of liquidity from the Minister of Finance will have a positive impact,” he said during a gathering event at Bank Mandiri in Jakarta, quoted on Thursday (February 26, 2026).
Asmoro explained that the positive impacts of extending the SAL funds include: firstly, it can ease the tension in the competition for liquidity, especially among large banks.
“Because, imagine if the funds were withdrawn when they matured, it would certainly be untimely,” he explained.
Secondly, there is potential for improved credit demand, which will provide space for banks to increase credit growth.
“So far, our projection for banking credit growth is in the high single-digit to low double-digit range, meaning between 9% and 11%,” he said.
Finally, if the tension in the competition for banking liquidity decreases, it can lower the tension in bank interest rates.
“Because, as you know, even though the BI Rate has been cut by a total of 125 bps, the decrease in third-party deposit rates has still been relatively limited,” he added.
“This is what should have a positive impact. The timeline is also quite long, with another six months until September. I think it is likely to be extended again,” he concluded.
For information, Minister of Finance Purbaya stated that the extension of placing excess funds, or SAL, which have been placed in BI and then allocated to banks, was decided because it has proven to be able to reduce lending rates.
He said that the weighted average lending rate as of January 2026 had fallen to 8.80% from 9.20% in January 2025. Purbaya considers this a positive effect of placing the Rp200 trillion in Himbara (a group of state-owned banks).
“However, we hope that banks will be more proactive in finding borrowers,” said Purbaya.
As is known, the extension of SAL funds in Himbara banks has been regulated in the Minister of Finance’s Decree (KMK) Number 276 of 2025.