BI Denies Purbaya's Claim, Ensures Banking Liquidity Remains Stable

Bank Indonesia (BI) has refuted claims made by the Indonesian Minister of Finance, Purbaya Yudhi Sadewa, regarding the accuracy of banking liquidity data. Sadewa had suggested that the indicators used by the Financial System Stability Committee (KSSK), which he chairs, were flawed and did not reflect the true liquidity situation in the banking sector.

During a meeting with Commission XI of the House of Representatives, Sadewa expressed concern that the data, sourced from BI, the Financial Services Authority (OJK), the Deposit Insurance Corporation (LPS), and the Ministry of Finance, might be inaccurate. He pointed to the M0 (base money) indicator, regularly released by BI, as a source of discrepancy. "All say (liquidity) ample, but their data is all wrong. So, there is a data error or indicator that we have used by KSSK all this time," Sadewa stated, adding that his team had been asked to rectify the issue.

However, BI, through its Senior Deputy Governor Destry Damayanti, maintained that banking liquidity is robust and sufficient to support intermediation targets. BI presented the Indonesia Overnight Index Average (INDONIA) as evidence. This interbank interest rate benchmark fell from 6.62 percent on June 18, 2026, to 6.17 percent on July 16, 2026. "This decrease in INDONIA reflects reduced pressure on liquidity demand in the interbank money market, so short-term funding needs can be met at a lower cost. This condition indicates that market liquidity remains adequate," Damayanti explained.

BI attributes the stable liquidity to its ongoing strategy of expanding liquidity through various monetary instruments, including repo, swap, and the purchase of government securities in the secondary market. These actions, BI asserts, ensure that the financial system has sufficient funds to operate smoothly and support economic activities.