Minister of Finance, Purbaya Yudhi Sadewa, has announced plans to revive Indonesia’s economic engines by channeling government funds from the Indonesian Central Bank (BI) into the banking sector.
Speaking at a hearing with the House of Representatives’ Finance Commission XI on Wednesday, September 10, 2025, Purbaya said that out of Rp425 trillion (US$25.8 billion) currently parked at BI, around Rp200 trillion (US$12.1 billion) would be injected into commercial banks.
“I have reported this to the president. I told him, Sir, I will put money into the economic system. How much? Out of Rp425 trillion at BI, tomorrow I will place Rp200 trillion,” Purbaya said.
He cited that the transfer aims to boost liquidity, expand credit distribution, and stimulate economic activity, while urging BI not to absorb the injection.
“If this enters the system, the central bank will also support it, meaning the economy will move again,” he said.
Purbaya emphasized that the funds are government money − mostly from taxes − that should not remain idle at BI. Instead, banks would manage the funds by lending to generate returns.
“I want to force the market mechanism to work by giving them the weapon. This will push banks to work harder to seek higher returns,” he noted.
The plan, however, still awaits President Prabowo Subianto’s approval and will be evaluated for its impact. If successful, the program could be extended until it produces a significant effect on the financial system.
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