JAKARTA, Sept. 16 (Xinhua) -- The Indonesian government has transferred 200 trillion rupiahs (about 12.23 billion U.S. dollars) from its central bank savings to five state-owned banks, aiming to strengthen banking liquidity, encourage lending to the real sector, and ultimately boost the national economy.
Finance Minister Purbaya Yudhi Sadewa recently announced that 200 trillion rupiahs will be allocated to Bank Mandiri, BRI, and BNI, with each bank receiving 55 trillion rupiahs. BTN will receive 25 trillion rupiahs, and BSI will receive 10 trillion rupiahs.
He explained that the additional liquidity was expected to increase the cash available in banks, enabling them to channel more funds to the public through loans and credits. This would make financing more accessible for households and businesses, thereby accelerating economic activity.
The move comes amid a slowdown in bank lending growth. According to Indonesia's Financial Services Authority, lending rose 7.03 percent year-on-year in July 2025 to 8,043 trillion rupiahs, down from 7.77 percent in June.
The micro, small, and medium enterprises (MSME) sector, the backbone of Indonesia's real economy, has shown a slowdown in bank lending. Bank Indonesia data showed that MSME loans reached 1,397.4 trillion rupiahs in July, up just 1.6 percent year-on-year, compared with 2 percent growth in June. This marks the lowest MSME credit growth since May 2021, reflecting weakening consumer purchasing power.
"So, I can assure you that the 200 trillion rupiahs in funds will be transferred into the banking system today," said Purbaya last Friday, hoping this additional liquidity would stimulate the real economic sector.
He noted that these funds were not emergency funds, but rather previously unspent government funds held at the central bank. By placing them in commercial banks, these funds could be accessed for credit.
Mohammad Nur Rianto, a professor of economics and business at Syarif Hidayatullah Islamic State University in Jakarta, said the liquidity injection would deliver at least three positive impacts on Indonesia's economy.
First, it strengthens financial system stability by ensuring banks have sufficient liquidity to withstand global shocks such as crises or market turmoil.
Second, it enhances financial inclusion. "If banks channel credit to productive sectors like MSMEs, manufacturing, agriculture, and infrastructure, economic growth will accelerate and the national economic base will strengthen," Rianto said.
Third, the policy could attract investment. "Foreign investors will see that the Indonesian government is committed to safeguarding its banking sector. This boosts investor confidence in both capital market and direct investment," he added.
Rianto emphasized that the injection acted like a powerful medicine for the economy, accelerating financial flows, reinforcing banking resilience, and driving growth.
"If these funds are truly used to boost productive sectors, the results could be extraordinary: job creation, rising investment, higher tax revenues, and sustainable growth," Rianto said. (1 U.S. dollar equals about 16,356 rupiahs) ■
