BI Chief Urges Banks to Lower Lending Rates Following Government Deposit

Monetary Policy Alignment

Bank Indonesia Governor Perry Warjiyo has called on commercial banks to expedite the reduction of lending rates following the government's strategic placement of state budget surplus funds with major state-owned banks. This move is seen as a coordinated effort to enhance the effectiveness of BI's monetary easing policy.

Government Fund Placement Details

The government, under Finance Minister Purbaya Yudhi Sadewa, has placed Rp 200 trillion of state budget surplus funds with five state-owned banks effective since September 12, 2025. The distribution was as follows:

• Bank Mandiri: Rp 55 trillion
• Bank Rakyat Indonesia (BRI): Rp 55 trillion
• Bank Negara Indonesia (BNI): Rp 55 trillion
• Bank Tabungan Negara (BTN): Rp 25 trillion
• Bank Syariah Indonesia (BSI): Rp 10 trillion

Policy Rationale

Warjiyo emphasized that the monetary easing measures implemented by BI, combined with the government's fund placement, necessitate a faster reduction in banking interest rates. This coordinated approach aims to stimulate economic growth by making credit more accessible and affordable for businesses and consumers.

Impact on Banking Sector

The move is expected to have a positive impact on the banking sector by potentially increasing loan disbursement and boosting economic activity. State-owned banks, in particular, are likely to play a crucial role in implementing this policy due to their significant market presence and government backing.