Finance Minister to Inject Rp 200 Trillion into Banking System
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JAKARTA, Investortrust.id — Finance Minister Purbaya Yudhi Sadewa has said he will channel Rp 200 trillion, equal to $12.5 billion, from government funds to the national banking system to ease a liquidity shortage and revive credit growth. He stated that President Prabowo Subianto has given his approval for the plan on Wednesday, Sept. 10, 2025.
“I have already reported to the president. I told him, ‘Sir, I will put money into the economy,’” Purbaya told lawmakers during a working meeting with the House of Representatives’ Commission XI in Jakarta.
The minister said the government currently holds Rp 425 trillion in cash deposited at Bank Indonesia, the central bank. Of this, Rp 200 trillion will be moved into commercial banks. “The process has already started and is underway,” he said.
Purbaya added that once the funds enter the system, Bank Indonesia has been asked not to absorb the liquidity. He argued that fiscal policy must play a more active role alongside monetary policy in supporting the economy. “Let Bank Indonesia continue with its monetary policy, while we handle a bit from the fiscal side,” he said.
The decision followed signs of a slowdown in domestic demand and what Purbaya described as “dryness” in the economy. “That is why in the past year people have found it hard to get jobs and so on, because there has been a policy mistake,” he said.
The Rp 200 trillion is expected to circulate through the banking system, forcing banks to seek returns higher than the cost of holding idle funds. “Banks will not let the money sit still. There is a cost, so they will be pushed to find higher returns. That is where growth starts,” Purbaya explained.
The minister, who previously served as chairman of the board of commissioners at the Indonesia Deposit Insurance Corporation (LPS), said he had already discussed the plan with senior deputies at Bank Indonesia. Under the arrangement, the funds would be transferred from government accounts at Bank Indonesia into government accounts at commercial banks.
The initiative comes after a contraction in primary base money, or M0, earlier this year. According to Bank Indonesia’s Statistics of Economic and Financial Indicators (SEKI), adjusted base money stood at Rp 2,027.32 trillion in December 2024 but fell 5.72% to Rp 1,911.3 trillion in January 2025. The figure rose to Rp 2,052.48 trillion in March but later slipped back below Rp 2,000 trillion.
“This is the first trial. We will continue until we see a significant impact,” Purbaya said.
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