Jakarta. The Finance Ministry has injected an additional Rp 76 trillion ($4.5 billion) into state-owned and regional banks to accelerate credit growth and support economic recovery, bringing the total government funds deployed into state lenders to Rp 276 trillion since Sept. 12.

The ministry confirmed the latest tranche during a parliamentary hearing on Tuesday, emphasizing that the initiative is designed to lower banks’ funding costs and spur lending to productive sectors.

“The objective is to channel the funds into the real economy, rather than circulating within financial instruments,” Finance Minister Purbaya Yudhi Sadewa said.

The Rp 76 trillion injection is allocated across Indonesia’s major state banks and regional lenders, with Bank Mandiri, Bank Rakyat Indonesia (BRI), and Bank Negara Indonesia (BNI) each receiving Rp 25 trillion, while Bank DKI received Rp 1 trillion.

This follows an earlier deployment of Rp 200 trillion from surplus budget funds via Bank Indonesia, which saw rapid absorption: as of Oct. 22, state banks had drawn Rp 167.6 trillion, or 84 percent of the initial allocation.

Bank Mandiri and BRI fully utilized their Rp 55 trillion allocations each, while BNI absorbed 68 percent of its Rp 55 trillion share. State-owned mortgage lender BTN and sharia bank BSI drew Rp 10.3 trillion of Rp 25 trillion and Rp 9.9 trillion of Rp 10 trillion, respectively. Officials credit the quick uptake to the government’s low placement rate of 3.8 percent, below prevailing funding costs for banks.

“This allows the real economy to move faster, as banks can extend credit at a lower cost of funds,” said Febrio Nathan Kacaribu, Director General of Economic and Fiscal Strategy at the ministry.

Unlike other programs, the funds are restricted from being used to purchase government bonds, ensuring they flow directly into productive lending. Banks retain flexibility to direct lending toward sectors that drive growth.