Indonesia’s financial landscape is buzzing with renewed vitality as a massive government liquidity injection into state-owned banks, collectively known as Himbara, propels the nation towards ambitious credit growth targets. The Ministry of Finance’s recent announcement underscores a strategic push to invigorate various sectors, painting an optimistic picture for the economy.

Market Snapshot: Key Indicators Reflect Dynamic Shifts

Amidst this policy-driven momentum, recent market performance offered a mixed, yet overall positive, outlook.

• The IHSG soared to 8,251, marking a robust +1.04% gain.
• Foreign capital flowed in, adding a significant Rp1.0 trillion to the market.
• The USD/IDR exchange rate held steady at 16,545, with a slight -0.09% dip.
• Commodity prices saw varied movements:
  • Gold registered a minor -0.31% decline to 4,057.
  • Oil prices edged up +0.32% to 66.5.
  • Coal experienced a -0.74% pullback to 107.2.
  • Crude Palm Oil (CPO) climbed +0.97% to 4,590.
  • Nickel dipped -0.92% to 15,346.

Liquidity Injection Fuels Himbara’s Lending Spree

Febrio Kacaribu, Director General at Indonesia’s Ministry of Finance, announced on Thursday, October 9, 2025, a significant realization from the government’s Rp200 trillion (approximately USD 12.09 billion) liquidity injection into Himbara banks. By September 2025, approximately Rp113 trillion, or roughly 56% of the total funds, had already been disbursed. This robust deployment has instilled confidence within the Ministry of Finance, projecting industry-wide credit growth to reach +10% year-on-year by the end of 2025. This target stands as a healthy leap from the +7.56% YoY recorded in the first eight months of 2025 and aligns with Bank Indonesia’s revised guidance of +8-11% YoY for the same period.

Leading the Charge: Bank Performance Highlights

Among the Himbara banks, Bank Mandiri (BMRI) emerged as the frontrunner, demonstrating the highest disbursement rate at 74% of its allocated funds. Conversely, Bank Tabungan Negara (BBTN) recorded the lowest at 19%. Both Bank Mandiri and Bank Syariah Indonesia (BRIS) are ambitiously aiming for full disbursement of their liquidity injections before the close of 2025. Meanwhile, Bank Rakyat Indonesia (BBRI) has set an even tighter deadline, targeting the full deployment of its remaining funds by the end of October 2025.

Targeted Sectors and Strategic Incentives

The bulk of the liquidity injection has been strategically channeled by Himbara banks into pivotal economic sectors. Febrio Kacaribu highlighted significant allocations to housing, construction, and agriculture. Bank Rakyat Indonesia further expanded its reach, directing funding towards plantations, trade, and various industrial segments.

Notably, Bank Syariah Indonesia is prioritizing national government programs such as the “Koperasi Desa Merah Putih” (Red and White Village Cooperatives) and “Makan Bergizi Gratis” (Free Nutritious Meals), alongside financing for Small and Medium-sized Enterprises (SMEs) and housing for non-civil servants. A compelling incentive underscores this focus: the interest rate payable by Himbara banks on these government deposits will decrease significantly from approximately 3.8% to 2% if the funds are specifically channeled into the Koperasi Desa Merah Putih program. This mechanism serves as a direct policy tool to guide credit towards key development initiatives.

Calls for Further Financial Lifelines

With the economy demonstrating robust demand, calls for additional funding are already emerging. Hery Gunardi, CEO of Bank Rakyat Indonesia, expressed optimism for further liquidity placement by the Ministry of Finance. He emphasized the ease and speed with which his bank could accelerate financing to productive sectors, given the high existing demand. Similarly, Minister of Finance Purbaya Yudhi Sadewa indicated that Bank Mandiri is also likely to request additional capital to expand credit specifically into the property and automotive sectors, signaling continued growth potential in these areas.

Expanding the Reach: Regional Banks Next in Line

The government’s strategic focus is not limited to national state-owned banks. Plans are underway to extend liquidity injections to regional development banks (BPDs). Minister Purbaya confirmed that Bank Jakarta and Bank Pembangunan Daerah Jawa Timur (BJTM) are slated to receive substantial placements, each estimated to be between Rp5-10 trillion. This move is expected to bolster local economies and empower regional financial institutions.

Pressure and Performance: The BBNI Mandate

In a direct engagement, Minister Purbaya urged Bank Negara Indonesia (BBNI) to accelerate its credit growth within the next two months. He underscored the government’s commitment by stating that placed funds would be withdrawn if growth proved to be insufficient. In response, BBNI’s management has set an ambitious credit growth target of over +11% year-on-year for 2026, surpassing its 2025 guidance of +8-10% YoY. This demonstrates the government’s proactive stance in ensuring the liquidity injections translate into palpable economic expansion.