Jakarta. Finance Minister Purbaya Yudhi Sadewa is moving ahead with a major fiscal initiative to channel Rp 200 trillion ($12 billion) into state-owned banks, underscoring the government’s push to accelerate credit growth and strengthen domestic liquidity.

Speaking at the Investor Daily Summit (IDS) 2025 in Jakarta on Thursday, Purbaya said the policy, which places idle government funds into the State-Owned Bank Association, Himbara,  is designed to keep money circulating in the real sector through productive lending.

“When I move government money into banks, it doesn’t mean there’s a shift in fiscal policy,” he said. “It simply means the money is working through loans, investments, and real economic activity.”

As of early October, around Rp 112.4 trillion ($6.8 billion), or 56 percent of the total allocation, has been absorbed by state lenders.

Bank Mandiri led with Rp 40.6 trillion in disbursement (74 percent of its share), followed by BRI at Rp 33.9 trillion (62 percent), BNI at Rp 27.6 trillion (50 percent), BSI at Rp 5.5 trillion (55 percent), and BTN at Rp 4.8 trillion (19 percent).

“BTN has only absorbed 19 percent, even though they were the most vocal about needing it. But that’s alright, the impact is still positive. At least they can not demand higher interest rates anymore,” Purbaya quipped.

He made clear that this fund placement policy is a continuation of the fiscal strategy first introduced during the pandemic when the government injected liquidity into state banks to support business lending and economic recovery. The difference now, he noted, is that the measure is being used more strategically to sustain momentum amid global financial uncertainty.

Purbaya also warned that banks lagging in credit distribution could lose part of their allocation. “If lending performance doesn’t improve by year-end, I’ll move around Rp 10 trillion to other banks unless they come and see me with a clear commitment,” he said.

The government’s proactive stance comes as policymakers seek to align fiscal and financial strategies with President Prabowo Subianto’s new economic order, which emphasizes inclusive growth, investment expansion, and stronger domestic industries.

Delivering his closing remarks at the IDS 2025 forum, Purbaya underscored a more proactive role for the Finance Ministry in pushing real-sector financing through Indonesia’s major state lenders, a move that drew close attention from the audience.

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