OJK Hopes Government SAL Withdrawals from Banks Will Be More Predictable and Planned

Healthy liquidity management requires predictability and adequate planning from all parties involved in the placement and withdrawal of funds. The Financial Services Authority (OJK) hopes that future withdrawals of government excess budget funds (SAL) from the Association of State-Owned Banks (Himbara) can be carried out in a more predictable and planned manner, so as not to create pressure on liquidity conditions or the intermediation function of banks. “Healthy liquidity management requires predictability and adequate planning from all parties involved in the placement and withdrawal of funds. In significant amounts, especially not small amounts. If the funds are small, I think it will not have much impact,” said OJK Chief Executive of Banking Supervision Dian Ediana Rae during a press conference on the results of the Monthly Board of Commissioners Meeting in Jakarta on Tuesday. Dian explained that changes in fund positions, whether through placement or withdrawal, can essentially be done in a planned manner with adequate notification. This would give banks sufficient time to adjust their funding strategies and liquidity management without causing unnecessary pressure on liquidity conditions or intermediation functions. The OJK views that liquidity management must be carried out based on good governance and risk management principles, taking into account the characteristics of funding sources, including the nominal amount and placement period. Therefore, banks must ensure prudent asset and liability management through adequate asset and liability management, the provision of high-quality liquid assets in accordance with regulations, periodic stress testing, and the preparation of effective contingency plans. The OJK will continue to monitor banking liquidity, both individually and industry-wide, through risk-based supervision. In addition, the OJK will continue to coordinate with Bank Indonesia, the Ministry of Finance, and the Indonesia Deposit Insurance Corporation within the framework of the Financial System Stability Committee. “Coordination between authorities is a very important aspect to ensure appropriate and complementary policy responses to anticipate these impacts,” said Dian. Dian added that the Financial Sector Development and Strengthening Law has mandated the Financial System Stability Committee as the main forum for inter-agency coordination in maintaining financial system stability. Through close coordination, financial system stability is expected to be maintained while supporting the sustainability of the banking intermediation function to encourage national economic growth. In general, the policy of re-placing a portion of government SAL funds can help bank funding, particularly in meeting or anticipating short-term liquidity needs. In addition, the additional source of funds strengthens the bank’s ability to carry out its intermediation function and encourages a reduction in the cost of funds in line with the bank’s fund management capabilities and strategies. The OJK also views that the re-placement of government SAL funds in Himbara supports the adequacy of banking liquidity, thereby creating healthier and more measured competition for funds and interest rates. However, according to the OJK, the amount of the cost of funds will be influenced by various factors, such as each bank’s funding strategy, fund structure, market interest rates, as well as the maturity profile of liabilities and overall liquidity conditions. In May 2026, bank lending grew by 11.51 percent year-on-year to Rp8,918 trillion. Meanwhile, third-party funds grew by 13.49 percent year-on-year to Rp10,294 trillion. The OJK noted that banking industry liquidity in May 2026 remained adequate, with the ratio of liquid assets to non-core deposits and liquid assets to third-party funds at 108.20 percent and 24.74 percent respectively, still above the thresholds of 50 percent and 10 percent. The liquidity coverage ratio stood at 186.54 percent.