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๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Economy & Trade

Indonesian Ministry of Finance extends 281 trillion rupiah fund placement in state banks until end of 2026

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News From a news agency New plan
  • Indonesia's Ministry of Finance will extend the placement of state funds totaling 281 trillion rupiah in state-owned banks (Himbara) until the end of 2026.
  • An additional 100 trillion rupiah in standby funds is also prepared to support liquidity if needed.
  • This measure aims to maintain credit distribution and support the banking sector's liquidity amid high demand for credit.

Indonesia's Ministry of Finance has decided to extend the placement of 281 trillion rupiah in state funds within state-owned banks (Himbara) until the end of December 2026. This move underscores the government's commitment to supporting the stability and liquidity of the national banking sector.

In addition to the extended placement, the ministry has also prepared an extra 100 trillion rupiah in standby funds. These funds are available to be deployed should the banking sector require additional liquidity, ensuring a robust safety net.

The government's funds (SAL) in banks will be returned, the previous 281 trillion rupiah will be returned again by 281 trillion rupiah and extended until the end of December 2026. Besides that, there is an additional 100 trillion rupiah as standby in case it is needed.

โ€” Juda Agung, Vice Minister of FinanceExplaining the decision to extend and supplement state fund placements in state-owned banks.

Vice Minister of Finance Juda Agung stated that the decision was made because the banking sector is still assessed as needing liquidity support to maintain credit distribution. He noted that demand for credit from the business world remains quite high, necessitating sustained bank liquidity. Agung expects this liquidity injection to help maintain double-digit credit growth, which stood at 11.5 percent in May 2026.

Credit grew 11.5 percent in May, we expect credit growth to remain double-digit in the coming months. Therefore, liquidity must indeed be maintained in the banking sector.

โ€” Juda Agung, Vice Minister of FinanceExpressing expectations for continued credit growth and the importance of maintaining banking liquidity.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.