The placement of Rp200 trillion in funds from the government through the Ministry of Finance to five state banks last September is now reported to have been channeled into financing to the productive sector.

As is known, the government injected IDR 200 trillion in funds from the Excess Budget Balance (SAL) to five state banks, namely PT Bank Rakyat Indonesia (Persero) Tbk (BRI), PT Bank Mandiri (Persero) Tbk, PT Bank Negara Indonesia (Persero) Tbk (BNI), PT Bank Tabungan Negara (Persero) Tbk (BTN), and PT Bank Syariah Indonesia Tbk (BSI).

BRI President Director Hery Gunadi said BRI had optimized the placement of Rp 55 trillion in government funds sourced from the Excess Budget Balance (SAL) for financing in the productive sector.

"Where as of October 16, 2025 the funds have been fully allocated to the micro segment amounting to Rp28.08 trillion, corporations Rp11.07 trillion, commercial Rp10.13 trillion, and consumers Rp6.58 trillion," he said at the BRI Financial Performance Press Conference for the third quarter, in Jakarta (30/10/2025).

On that occasion, BRI also reported a net profit in the third quarter of 2025 of Rp 41.2 trillion, down 9.17% from the same period last year (year on year / YoY) of Rp 45.36 trillion.

In terms of intermediation, BRI recorded lending growth of 6.3% YoY to Rp1,438 trillion, while Third Party Funds (DPK) grew 8.2% YoY to Rp1,474 trillion.

This slick performance made BRI's assets grow 8.2% YoY to Rp2,123 trillion.

BRI also took part in the distribution of Wage Subsidy Assistance (BSU) worth IDR 2.25 trillion to 3.7 million recipients, as well as Housing Financing Liquidity Facility (FLPP) financing to 110 thousand low-income people with a distribution value of IDR 15.07 trillion.

In addition, the Company also supports the Red and White Village Cooperative (KDMP) program and will play a role in the distribution of Temporary Cash Assistance for People's Welfare (BLTS Kesra) to maintain people's purchasing power.

Financing from other state banks

Another state bank, Bank Mandiri, has also reported the distribution of financing from government funds. The government mandate has been effectively channeled amounting to Rp41 trillion by the end of September 2025, or in just 15 days. In early September, Bank Mandiri received an injection of Rp55 trillion.

Reaching more than 15 national strategic sectors to support food and energy security, reaching more than 24 thousand UMKM, evenly distributed in 37 provinces throughout Indonesia. This achievement reflects Bank Mandiri's real commitment to strengthen the people's economy in a sustainable manner.

Bank Mandiri Commercial Banking Director Totok Priyambodo said that until September 30, 2025, the realization of lending from SAL funds reached 74% of the total placement of 55 trillion rupiah. 

"The entire distribution is carried out with prudent principles and transparent reporting. We focus on the UMKM segment and labor-intensive industries such as plantations and food security, downstream natural resources and renewable energy, health services, manufacturing, and industrial estates. BM seeks to encourage national economic growth while expanding job creation," he told SUAR in Jakarta (30/10/2025).

The same thing was also done by BSI. BSI President Director Anggoro Eko Cahyo added that the placement of Rp10 trillion government funds in BSI can be fully disbursed this October.

He said that currently the absorption of these funds has exceeded 50%. However, he did not mention in detail how much the absorption rate was. He will provide more information about this when he meets Finance Minister Purbaya Yudhi Sadewa in the near future.

Abundant liquidity

Previously on Wednesday (22/10/2025), Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar accompanied by OJK Banking Supervision Executive Head Dian Ediana Rae met Minister of Finance Purbaya Yudhi Sadewa at the Ministry of Finance office, Jakarta.

On that occasion, Mahendra reported on the development of lending from the injection of SAL funds provided by the Ministry of Finance from SAL.

Mahendra said that the placement of funds amounting to Rp 200 trillion had increased banking liquidity and provided lending space for Himbara. In practice, the funds areblended with funds previously owned by banks.

On the other hand, the injection of government funds also provides momentum for Himbara to lower all interest rates. Thus, Himbara is expected to increase credit growth to then drive faster economic growth.

Mahendra said, based on the reports he received, the realization of lending from each bank was different. Some are 70%, 50% and some are only around 20%-30%.

On a separate occasion, last Tuesday (28/10/2025), Finance Minister Purbaya Yudhi Sadewa warned that the funds should not be channeled to conglomerates. The government's goal of providing additional liquidity, continued Purbaya, is so that it can be channeled into business capital that can drive the community's economy.

He added that if the banking system is good, the credit distribution will spread to the financial system and can be channeled to various economic and industrial sectors.

At the press conference of the Board of Governors' Meeting (RDG), Wednesday (22/10/2025), Bank Indonesia (BI) Governor Perry Warjiyo said that loose monetary policy and the placement of Government SAL funds in banks pushed up the money supply. 

Citing BI data, economic liquidity or broad money (M2) in September 2025 grew higher. M2 growth in September 2025 amounted to 8.0% YoY, higher than August 2025 growth of 7.6% YoY so that it was recorded at IDR 9,771.3 trillion. This development was driven by the growth of narrow money supply (M1) by 10.7% YoY and quasi money by 6.2% (yoy). This means that the money injected by the government into the five state banks has proven to further flood the liquidity of money in circulation.

Perry said that credit demand has not been strong due to the wait-and-see attitude of business actors, optimization of internal financing by corporations, and relatively high lending rates. 

"Interest in banklending is generally quite good as reflected in the fairly looselending requirements, except for the consumption credit segment and UMKM in line with the prudent attitude of banks amid credit risk in both segments," Perry said.