Purbaya Injects Rp281 T into Himbara, Credit Growth to Remain Double Digit

Jakarta - Economists have detailed several positive impacts from the return of government funds to the Association of State-Owned Banks (Himbara) on Indonesia’s credit growth and economy. The government has committed to injecting funds back into Himbara amounting to Rp 281 trillion. This decision was announced by Deputy Finance Minister Juda Agung on Monday (29/6/2026).

Bank Permata economist Josua Pardede stated that the re-placement of government funds into Himbara banks could help maintain credit growth in the second half of 2026, keeping it in double digits. "From the credit side, this policy can help maintain double-digit credit growth in the second half of 2026, but it does not automatically make credit soar," Josua told CNBC Indonesia on Tuesday (30/6/2026). Banks will also continue to monitor credit demand, debtor quality, business sector risks, collateral values, and economic prospects. "Data from May 2026 shows credit grew 10.8%, up from 9.4% in April 2026, so the credit engine is still running," Josua continued.

Josua added that from an economic perspective, the placement of government funds into Himbara banks helps maintain growth at 5%, although this policy is not the sole determinant. "This policy helps keep the economy growing above 5%, but it is not the single determinant. Its impact works through reducing pressure on the cost of funds, stabilising bank liquidity, and smoothing credit flow to the real sector. However, growth above 5% still depends on household purchasing power, government spending, private investment, rupiah stability, food inflation, energy prices, and business confidence," Josua explained.

Meanwhile, BCA economist David Sumual said the placement of government funds in Himbara banks could boost credit growth. "Of course, with this fund placement, banks, especially Himbara, can boost credit growth related to government programmes. The key is how large the multiplier effect created from credit growth in this sector will be on credit growth in other sectors," David said. He added that if this policy is effective, such as successfully creating jobs, it could certainly encourage broader credit growth in other banks and other sectors.

David added that the fund placement policy also drives economic growth, though it only provides a small push. "The significant contribution of household consumption to Indonesia’s GDP can act as a buffer for growth figures, keeping it at least above 2.5-3.5%. However, many other factors are still needed to push real GDP growth to remain stable above 5%," David explained. To achieve stable economic growth, he noted, sufficiently strong investment from both domestic and foreign sources is needed, along with the creation of widespread employment. "To reach this ideal condition, more than just liquidity injections and credit growth is required," David concluded.