Government Earmarks $692M to Open Bank Accounts for All 17-Year-Olds

JAKARTA, Investortrust.id — The Indonesian government is preparing an initial state outlay of approximately Rp 11 trillion ($691.82 million) to automatically issue bank accounts to every citizen who turns 17.

Under the initiative, the state will seed each newly created account with a starting balance of Rp 50,000 ($3.14). The funding will cover the country's population of citizens aged 17 and older, which currently stands at roughly 200 million individuals.

By synchronizing formal banking registration with the mandatory issuance of national identity cards at age 17, Southeast Asia’s largest economy is constructing direct financial rails to achieve universal banking inclusion. Pre-populating consumer accounts directly within state-owned financial institutions lowers onboarding friction, links millions of young adults directly to digital payment networks, and provides the government with a leak-proof channel to disburse social safety net cash transfers.

Speaking to journalists at the Presidential Palace complex in Jakarta on Wednesday, Sept. 9, 2026, Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that the program’s capital will be drawn directly from the state budget (APBN).

"If the population is around 200 million people, that means it will require roughly Rp 11 trillion ($691.82 million)," Airlangga said on Wednesday.

No Trapped Balances for Depositors

Airlangga emphasized that the initial Rp 50,000 subsidy will be fully spendable by the recipients, meaning accounts will carry no minimum locked-in balance requirements.

"Yes, it can be withdrawn," Airlangga told reporters on Wednesday.

Citizens who already hold a National Identity Card (KTP) will be registered automatically through identity matching. For citizens who already operate existing commercial bank accounts, the state will still create accounts and consolidate data through two primary state-backed lenders: rural banking giant PT Bank Rakyat Indonesia (Persero) Tbk (BRI) and the nation’s flagship Islamic lender PT Bank Syariah Indonesia Tbk (BSI).

"They will receive them automatically; we will collaborate with the Directorate General of Population and Civil Registration (Dukcapil) regarding the demographic data," Airlangga stated.

Aligning State Directives and Digital Rails

The policy stems from a direct mandate issued by President Prabowo Subianto aimed at accelerating national financial literacy and consumer adoption of regulated banking services.

"Yesterday, the President instructed that every citizen must have a bank account," Airlangga said in a statement cited on Wednesday. "As soon as they turn 17 years old, they will automatically receive both an identity card and a bank account."

Airlangga added that commercial lenders are strictly forbidden from collecting administrative fees against the state-funded seed capital.

"The government will certainly shoulder the expense of funding the account at Rp 50,000 per person," Airlangga noted. "The account will be credited immediately, and banks are prohibited from taking deductions from that balance."

Regulatory drafting is actively underway alongside central bank Bank Indonesia (BI) and the Financial Services Authority (OJK). Each account will be integrated directly with the national Quick Response Code Indonesian Standard (QRIS) ecosystem, transforming the basic accounts into active digital transaction nodes while serving as the primary delivery system for future direct social cash transfers (bansos).

Authorities are scheduling the program to begin gradual implementation toward the end of 2026.