Purbaya Strictly Prohibits Finance Ministry SMVs from Offering Special Deposit Rates to Banks

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa will limit the deposit rates of special financial institutions under the Ministry of Finance, known as special mission vehicles (SMVs), in order to reduce bank lending rates. SMVs under the Ministry of Finance are ‘special agents’ tasked with carrying out development duties and managing strategic financing outside the state’s routine fiscal functions. The deposit rates of the ministry’s SMVs will be set at 80% of the Bank Indonesia (BI) benchmark rate. The Ministry of Finance’s SMVs include PT Sarana Multi Infrastruktur (SMI), PT Penjaminan Infrastruktur Indonesia (PII), the Government Investment Centre (PIP), LPEI, and Sarana Multigriya Finansial (SMF). ‘I will limit the interest rate level requested to be the same as when the government places money in banks, which is 80% of the BI rate,’ he said during a media briefing at the Juanda Building, Jakarta, on Wednesday (5/8/2026). Purbaya stated that the policy is intended to lower lending rates to ensure Indonesia’s economic growth can accelerate in the second half of 2026. He indicated that the implementation of the policy could begin next week. ‘I expect that by next week everything will be running. Because they need to arrange the letters and request the cancellation of deposits for the lower interest rate. I hope everything is running by next week,’ said Purbaya. The new regulation was formulated after Purbaya met with the state-owned banks association (Himbara). He said the banks complained that they were forced to pay high deposit rates of 8-9%, which in turn affected their lending rates. ‘I called the Himbara banks earlier, their treasury departments came, all of them. They said they are under pressure, still paying 8-9%, so their cost of capital goes up, and as a result, lending rates cannot come down,’ Purbaya stated. ‘That credit is being offered at 13% or 14% interest, or more,’ he added. The Himbara banks subsequently provided input that the SMVs’ deposit rates should be lowered.