OJK Assures Banking Liquidity Remains Adequate Despite Government Withdrawal

Liquidity Metrics Remain Strong

The Financial Services Authority (OJK) has confirmed that the recent government withdrawal of Rp75 trillion from state-owned banks will not significantly affect the banking system's liquidity. As of January 6, 2026, the banking sector maintained robust liquidity metrics, with a liquidity coverage ratio (LCR) of 210.38% and a Loan to Deposit Ratio (LDR) of 83.99%. These figures indicate that banks have sufficient liquidity buffers well above the minimum regulatory requirement of 100% for LCR.

OJK's Oversight and Banking Sector Response

Dian Ediana Rae, OJK's Executive Head of Banking Supervision, emphasized that banks have been maintaining appropriate risk appetite in managing their liquidity. The regulator continues to support the government's strategic measures to stimulate the economy while ensuring that banks maintain proper risk management practices. The OJK will continue to oversee banks to ensure they maintain good governance and risk management in credit distribution, thereby preserving asset quality.

Government's Cash Management Strategy

The withdrawal of Rp75 trillion was part of the government's cash management strategy, as confirmed by Finance Minister Purbaya Yudhi Sadewa in December 2025. The government had previously placed significant funds in state-owned banks, initially depositing Rp200 trillion on September 12, 2025, followed by an additional Rp76 trillion on November 10, 2025. The remaining government funds in the banking system currently stand at Rp201 trillion.

Economic Rationale and Future Coordination

The government maintains that this cash management strategy actually supports economic activity by converting bank deposits into real economic spending. To enhance the effectiveness of these measures, the OJK suggests that better coordination between fiscal, monetary, and financial sectors through the Financial System Stability Committee (KSSK) will be crucial in addressing future economic challenges.