Indonesian Banks Boost Deposit Promotion as Year-End Approaches

Strengthening Third-Party Funds

Indonesian banks are intensifying their fixed deposit promotion campaigns to strengthen their Third-Party Funds (DPK) as the year comes to a close. This strategic move is driven by the need to maintain a robust liquidity structure amid a dynamic financial market, a declining benchmark interest rate trend, and increasing credit expansion needs heading into 2026.

Current DPK Growth Trends

According to Bank Indonesia (BI) data, the national banking sector's Third-Party Funds reached Rp9,153.6 trillion in October 2025, growing 8.1% year-on-year (yoy). Although this represents a slowdown from the previous month's growth of 8.4% yoy, the overall DPK growth is still positive. The growth was primarily driven by current accounts and savings accounts, which increased by 13.2% yoy and 7.2% yoy, respectively. Fixed deposits grew at a more modest rate of 4.9% yoy.

Corporate Deposits Lead Growth

The growth in DPK was mainly fueled by corporate deposits, which rose by 15.9% yoy, up from 15.5% yoy in the previous month. This indicates that corporate entities continue to be a significant source of funds for Indonesian banks.

Competitive Deposit Products

In response to the competitive landscape, banks are offering attractive deposit products. PT Bank Woori Saudara Indonesia 1906 Tbk. (SDRA) has launched the Deposito Optima program, offering a combination of 3 and 6-month tenors with interest rates up to 5.1% for deposits starting at Rp50 million for individuals and Rp500 million for corporates. Digital banks are also entering the fray; PT Bank Jago Tbk. (ARTO) introduced a November 2025 deposit promotion with rates up to 5% for deposits as low as Rp10 million with a tenor of 14 days. Meanwhile, PT Bank Aladin Syariah Tbk. (BANK) launched the Ala Deposito Spesial with a mudharabah contract, offering a profit-sharing ratio of up to 68%, equivalent to a return of 7.25%, with additional bonuses that bring the total benefit to an equivalent of 9%.

Strategic Implications

Analysts view these aggressive deposit promotion strategies as a response to anticipated higher credit demand in 2026. By enhancing their deposit base, banks aim to maintain a healthy loan-to-deposit ratio and support future credit expansion plans. The current phase is seen as a normalization of funding strategies, where banks need to optimize their funding composition to ensure sustainable growth.