The Ministry of Finance has extended the placement of IDR 200 trillion in funds in the banking sector, which was due to mature in March 2026, for another six months. 

The government had previously placed the funds in banks in September 2025, with maturity scheduled for March this year. Finance Minister Purbaya Yudhi Sadewa said he had coordinated with Bank Indonesia Governor Perry Warjiyo regarding the matter. According to him, the fiscal strategy involving the IDR 200 trillion placement continues to be coordinated with Bank Indonesia’s monetary strategy to consistently support liquidity. 

Meanwhile, Purbaya also stated that the amount of currency in circulation, or the monetary base (M0), continued to grow by 11.7 percent in the first week of February. “This provides room for credit to grow at double digits as well,” he said on Monday, 23 February. 

Purbaya affirmed that M0 growth would be maintained at double-digit levels. The effort is also supported by Bank Indonesia. 

“The results of this fiscal-monetary coordination are clearly felt. Credit grew by 10 percent in January, with interest rates remaining competitive for the public,” he said. 

Purbaya noted that lending rates had declined to 8.80 percent as of January 2026, compared to 9.12 percent in August 2025. 

On the other hand, Purbaya said the government would continue to uphold its commitment to the agreed policy coordination with Bank Indonesia. He stressed that banks need not worry about losing liquidity, as the government will continue to support market liquidity. 

“We expect banks to be more proactive in seeking borrowers, while continuing to implement prudential principles,” Purbaya said. 

This article is published in partnership with Katadata  

Original article here