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View all search resultsPurbaya extends liquidity injection for six more months
The Finance Minister revealed that the fiscal deficit in January was at 0.21 percent of GDP, which he said was “very much under control and totally within the design corridor of the 2026 state budget”.
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Finance Minister Purbaya Yudhi Sadewa's face is displayed on screen during his speech on Dec. 3, 2025, in the main hall of the Indonesia Stock Exchange (IDX) building in South Jakarta. (JP/Deni Ghifari)
F
inance Minister Purbaya Yudhi Sadewa has announced that the ministry will extend the liquidity injection to local banks for another six months when the deposits mature next month.
Purbaya announced the decision in a press conference about the state budget on Monday, claiming that Bank Indonesia (BI) is fully on board with the policy.
“Banks don’t need to worry about losing liquidity because the government will keep supporting liquidity in the market. We hope that banks will be encouraged to find debtors while still maintaining the prudential principle,” said the minister.
One of the first things Purbaya did since taking up the minister’s mantle last September was moving Rp 200 trillion (US$11.9 billion) of government cash deposited at BI to government accounts in commercial banks, with the deposit rate set at 80 percent of the BI Rate, in hopes of spurring credit growth.
The banks could only receive the funds under the condition that the injection is to be used exclusively for disbursing loans. Purbaya explained that the banks would be forced to find ways to make up for the interest they have to pay to the state through increasing lending.
The deposit would mature on March 13 and the extension would bring the new maturity date to September, after which the move would face “further evaluation” and “hope that the economy would move faster”, said Purbaya.
After the first deposit, Purbaya topped it up by Rp 76 trillion in November but pulled Rp 75 trillion back in January, leaving a total of Rp 201 trillion in the deposit, placed in state-owned lenders Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Tabungan Negara (BTN), Bank Syariah Indonesia (BSI) and Bank Jakarta.
