Finance Minister Names Bank Jakarta and Bank Jatim as Next Recipients of Government Fund Placement

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JAKARTA, Investortrust.id — Finance Minister Purbaya Yudhi Sadewa has named Bank Jakarta and Bank Jatim as the first regional development banks eligible to receive government fund placement, part of a fiscal strategy to reallocate idle money from Bank Indonesia to the real economy.

“I am looking at those with strong credit demand and solid fundamentals behind them,” Purbaya said at the Finance Ministry in Jakarta on Tuesday, Oct 7, 2025.

He explained that the government plans to withdraw part of its deposits from Bank Indonesia and place them in regional banks to help accelerate credit distribution and stimulate economic growth.

According to him, both Bank Jakarta and Bank Jatim met the criteria of having high loan demand and solid balance sheets, making them strong enough to manage multi-trillion-rupiah government placements, equal to several billion US dollars.

The policy direction followed a meeting between Purbaya and Jakarta Governor Pramono Anung Wibowo earlier the same day at City Hall, where they discussed the central government’s plan to inject tens of trillions of rupiah into Bank Jakarta.

“Jakarta has Bank Jakarta. I have already placed Rp 200 trillion in state-owned banks; why not add several tens of trillions more to Bank Jakarta?” Purbaya said.

He noted that the final figure for injections to Bank Jakarta and Bank Jatim is still under calculation, but even Rp 10–20 trillion, or around $600 million–$1.2 billion, would be sufficient to channel new loans to small businesses and local industries.

Governor Pramono expressed confidence that Bank Jakarta would absorb the funds effectively. “The Governor said yes, they can. So we will implement the same strategy for Bank Jakarta,” Purbaya said.

Purbaya also clarified that withdrawing deposits from Bank Indonesia would not disrupt the central bank’s liquidity management. He emphasized that Bank Indonesia had sufficient instruments such as Rupiah Securities (SRBI) to sterilize excess liquidity.

“This will not interfere with the central bank. It is not a monetary policy measure but a fiscal move to keep the economy moving,” he said.

The initiative extends the government’s earlier Rp 200 trillion ($12 billion) placement in state-owned Himbara banks, which Purbaya said had already begun to show results.

Data from Bank Mandiri showed credit growth accelerating from 8% to 11% following the fund placement, while base money expanded sharply from 0% to around 13%. “These are clear indicators that liquidity is entering the system. It is only a matter of time before the economy gains stronger momentum,” Purbaya said.