PT Bank Tabungan Negara (BTN) has provided mechanism guidelines for accessing Rp25 trillion (US$1.5 billion) in government funds, which will be disbursed through a reimbursement system.

BTN President Director Nixon L.P. Napitupulu said the funds are already recorded in the bank’s mandatory reserve (Giro Wajib Minimum or GWM) account at the Indonesian Central Bank (BI). However, BTN can only draw on the funds once it has disbursed loans and reported the results to the central bank.

“The mechanism works like this: the bank disburses the loans first, then gets reimbursed. Don’t get it wrong − people think we’ve already received Rp25 trillion. The money is in our GWM, but it only becomes liquidity once the loans are disbursed,” Nixon told journalists during BTN’s Media Gathering in Bandung, West Java, on Friday, September 19, 2025.

The GWM is the minimum reserve requirement that banks must maintain at BI as a percentage of third-party funds collected. It functions as a monetary policy tool to manage liquidity and economic stability.

With the Rp25 trillion injection, Nixon said liquidity is no longer BTN’s main challenge. Instead, the bank now faces tougher competition with other lenders in attracting borrowers. To stay competitive, BTN will accelerate its loan approval process to ensure its credit pipeline remains intact.

The funds are expected to support economic growth, with Nixon expressing optimism that the full amount could be disbursed by December 2025 − or even earlier, by November, based on the bank’s lending pipeline.

BTN is targeting loan growth of 7–9 percent, deposit growth of 8–10 percent, a cost of credit above 1.5 percent, and a gross non-performing loan (NPL) ratio below 3.1 percent. “These targets do not yet factor in the Rp25 trillion government placement,” Nixon said.