Purbaya Injects Rp 100 Trillion into Banking Sector to Ease Liquidity Pressures

The government is adding Rp 100 trillion in fund placements to the banking sector to safeguard liquidity amid rising yields on government bonds. Finance Minister Purbaya Yudhi Sadewa stated that the increase in debt yields serves as an early indicator of liquidity pressures in the banking sector. He said he responded immediately upon observing this movement. “If bond yields rise by 0.1 percent, I take notice. A 0.4 percent increase definitely signals a liquidity drought in banks. I checked, and indeed the banks were short,” he remarked at the Ministry of Finance office on Wednesday (25/3/2026). “I’ve added another Rp 100 trillion entering the economic system. We’re seriously safeguarding liquidity,” Purbaya added. Previously, the government had placed Rp 200 trillion. With this latest addition, the total funds placed in banking reach around Rp 300 trillion. Purbaya explained that this fund placement is expected to help curb the rise in bond yields. Banks have the option to place funds at Bank Indonesia or purchase government securities (SBN). “If banks buy bonds, the yields can be pushed down again. At the very least, they won’t rise too high or cause interest rates to surge sharply,” he said. Nevertheless, he acknowledged that the additional Rp 100 trillion is not yet substantial but sufficient to dampen volatility. Unlike previous schemes, this fund placement is flexible. The government can withdraw the funds at any time as needed. “This is somewhat different. The placement is flexible and can be withdrawn anytime,” Purbaya stated. He emphasised that the government is continuously monitoring liquidity conditions to keep them stable throughout the year. This strategy is also part of state cash management. “We’re not sitting idle. We’re monitoring continuously,” he said. Regarding the distribution of funds, Purbaya did not detail the allocation to each bank. However, he mentioned that one regional bank received an allocation. “I forget the breakdown, but Bank DKI received around Rp 2 trillion,” he said. For the initial stage, the placement is focused on state-owned banks and regional banks. Private banks, according to him, will be considered later with strict selection. This policy, Purbaya continued, will be continuously evaluated in line with developments in the financial markets and national liquidity needs.