Extended Government Deposit Could Push Indonesian Credit Growth to 20%, Finance Minister Says

Indonesia’s Finance Minister Purbaya Yudhi Sadewa said the government’s decision to extend the placement of budget surplus funds in banks could push credit growth above 20%.

The government has extended the placement of its Saldo Anggaran Lebih, or SAL, through July 2027. Purbaya said the longer placement would give banks more scope to maintain favorable liquidity conditions. He said recent credit growth stood at 13.8%, up from earlier levels, partly because of liquidity in the financial system.

Purbaya said he relies more on base money, known as M0, to assess financial-system liquidity than on the ratio of liquid assets to third-party funds. Base money grew 18.3% in July 2026, and he estimated growth in August would remain around 18%.

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That, if it is held continuously going forward, could create credit growth above 20%. The latest data shows credit at 13.8%, increasing from before because of the liquidity in our financial system.

He said closer coordination with Bank Indonesia would help ensure that the government’s deposits have the strongest possible effect on the national economy. Purbaya also predicted that the economy could grow well above 6% if the government remained active, while the private sector could perform better than the previous year.

If the government needs to withdraw the funds, he said it would coordinate with the central bank to avoid disrupting base money. The SAL cannot be used before completing procedures with parliament, and the funds are divided between Bank Indonesia and the banking system according to cash-flow management needs.

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If the government were simply inactive, the economy could grow by 6%. Since the government is active now, it will be significantly above 6%.