Indonesia's Finance Ministry Expects Rp200tn in Bank Funds to Lift Credit Growth to 10%

1 week ago 9

October 9, 2025 | 05:57 pm

TEMPO.CO, Jakarta - Indonesia's Ministry of Finance expects that the government’s placement of Rp200 trillion in state-owned banks will boost national credit growth by up to 10 percent by the end of 2025.

Officials say the absorption of the funds so far has shown promising results.

“If credit growth reached 7 percent in August, we hope it can rise to 10 percent by year-end. The impact will be reflected in working capital, consumption, and investment credit, which will ultimately support GDP growth in the fourth quarter,” said Febrio Kacaribu, Director-General of Economic and Fiscal Policy Strategy at the Finance Ministry, during a media briefing at the Directorate General of Taxation office in Jakarta on October 9, 2025.

According to Febrio, of the total Rp200 trillion transferred from Bank Indonesia (BI) to the five state-owned banks, Bank Mandiri recorded the highest absorption rate.

The funds were allocated as follows: Rp55 trillion each to Bank Mandiri, BNI, and BRI; Rp25 trillion to BTN; and Rp10 trillion to Bank Syariah Indonesia (BSI).

So far, Bank Mandiri has distributed 74 percent of its allocation, followed by BRI with 62 percent, BNI with 50 percent, BSI with 55 percent, and BTN with 19 percent.

“The majority of these funds have been channeled to the housing, construction, and agricultural sectors. We expect absorption to continue improving through the end of the year,” Febrio added.

He explained that the transfer of government cash from BI to state-owned banks aims to strengthen banking liquidity and stimulate lending in the real sector. The ministry projects national credit growth could reach double digits by the end of 2025.

According to Febrio, the policy offers mutual benefits. “For banks, these funds provide attractive, low-cost liquidity. For the government, it’s as safe as placing money in BI, but more productive because it directly supports the real economy,” he said.

Earlier, Minister of Finance Purbaya Yudhi Sadewa confirmed that the government had placed Rp200 trillion in five state-owned banks to bolster financing for productive sectors.

“I just want to make sure the funds are not used to buy dollars, because the purpose is to strengthen the domestic economy,” Purbaya said in Surabaya on October 2, 2025.

Anastasya Lavenia Yudi and Hana Septiana contributed to this article.

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