Jakarta. Finance Minister Purbaya Yudhi Sadewa has withdrawn Rp 75 trillion ($4.46 billion) in government funds previously parked at state-owned banks to directly finance government programs toward the end of 2025, a move regulators say has had no material impact on banking liquidity.

Financial Services Authority (OJK) said the pullback did not significantly affect liquidity at state-owned banks, citing strong buffers across the system.

Data show that the government had placed a total of Rp 276 trillion in surplus budget funds at Bank Indonesia in two stages last year, Rp 200 trillion on Sept. 12 and Rp 76 trillion on Nov. 10. The funds were then distributed to major lenders, with BRI, Bank Mandiri and BNI each receiving Rp 80 trillion, followed by BTN at Rp 25 trillion, BSI at Rp 10 trillion, and Bank Jakarta at Rp 1 trillion.

By the end of 2025, however, Purbaya confirmed that Rp 75 trillion had been withdrawn from state banks, without detailing the amount taken from each lender. The move left total government deposits in the banking system at around Rp 201 trillion.

Purbaya said the initial placement funds was aimed at easing tight liquidity conditions in the banking sector and encouraging credit growth to the real economy. But he acknowledged the impact fell short of expectations due to a lack of full policy alignment between fiscal and monetary authorities, as reflected in slower credit growth of 7.36% year-on-year in October 2025.

“The liquidity injection we placed in the banking system was not as effective as I had anticipated. The economy should have moved faster, but there was some policy misalignment between the government and the central bank,” Purbaya said.

He added that coordination has since improved, adding that Bank Indonesia’s support in the final weeks of 2025 should significantly boost liquidity. Purbaya voiced optimism that economic growth next year could exceed the 5.4% assumption set in the 2026 state budget, potentially reaching 6%.

“Money will be more abundant in the economy, so there’s no need to worry about a slowdown,” he said.

No significant liquidity impact

OJK’s Chief Executive for Banking Supervision Dian Ediana Rae echoed the assessment, saying the Rp 75 trillion withdrawal posed no meaningful risk to liquidity at state banks.

“From our assessment, the withdrawal of Rp 75 trillion in SAL funds from state banks does not have a significant impact on bank liquidity,” Dian said during a press briefing on the results of the December 2025 Financial System Assessment Meeting.

As of Jan. 6, banking liquidity remained adequate, with state banks’ liquidity coverage ratios (LCR) still above the 100% threshold. System-wide, LCR stood at 210.38%, while the loan-to-deposit ratio (LDR) was a healthy 83.99% as of November 2025.

Dian attributed the resilience partly to strong deposit growth, with third-party funds rising 12.03% year-on-year, up from 11.48% the previous month. Banking credit continued to expand by 7.74% in November, while gross non-performing loans remained contained at 2.21%.

Going forward, Dian said banks would continue to manage liquidity prudently in line with their risk appetite, including adjusting to large withdrawals such as those made by the government. OJK supports the placement of SAL funds in banks as a supply-side stimulus, but also called for measures to boost credit demand to ensure sustainable economic growth.