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View all search resultsBanks near full disbursement of $12b liquidity boost, cut borrowing costs
September's liquidity injection led to state-owned banks cutting their deposit rates by around 50 basis points (bps) and lending rates by around 11 bps, according to the Finance Ministry, which expects this to translate into stronger growth this quarter.
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Febrio Nathan Kacaribu, director general of economic and fiscal strategy at the Finance Ministry (courtesy of /Indonesia University)
S
tate-owned lenders have disbursed 84 percent of the Rp 200 trillion (US$12.2 billion) injection of third-party funds as credit to borrowers, according to the Finance Ministry. The policy, aimed at spurring credit expansion and economic growth, has also resulted in cheaper liquidity that eases banks’ funding costs and lowers loan interest rates.
Febrio Nathan Kacaribu, director general of economic and fiscal strategy at the Finance Ministry, said loan disbursements from the liquidity injection had reached Rp 167.6 trillion (US$10 billion), including some state-owned banks that had fully disbursed their allocations.
“We can see that Bank Rakyat Indonesia [BRI] and Bank Mandiri have moved fast, as both have reached 100 percent disbursement,” Febrio said on Wednesday at the InvestorTrust Economic Outlook 2026, held at the Ritz-Carlton Jakarta Mega Kuningan in Setiabudi, South Jakarta.
“They’ve even asked for more, and we’ll evaluate that soon.”
Both banks had fully disbursed their Rp 55 trillion allocation as of Oct. 22, while Bank Negara Indonesia (BNI) had disbursed 68 percent of its Rp 55 trillion allocation, Bank Tabungan Negara (BTN) 41 percent of its Rp 25 trillion fund and Bank Syariah Indonesia (BSI) 99 percent of its Rp 10 trillion allocation.
Febrio said the government’s Rp 200 trillion liquidity injection had eased funding costs for state-owned lenders, which had previously relied heavily on deposits with special rates.
Before the injection, more than 30 percent of banks’ funds came from high-interest deposits, some offering rates above 7 percent. The new funds, carrying a 3.8 percent interest rate, had undercut those expensive sources, prompting banks to lower their rates, he explained.
