Indonesia limits deposit rates for Finance Ministry public service agencies
The ceiling is intended to curb competition for large deposits, with the newly appointed treasury chief asked to draw up supporting regulations.
Public service agencies within Indonesia’s Finance Ministry face a deposit interest ceiling equivalent to 80 per cent of Bank Indonesia’s benchmark rate, Finance Minister Suahasil Nazara said on 23 October 2026. He described the measure as a way to restrain interest-rate competition among holders of large funds.
The limit puts the agencies’ maximum deposit rate at 4.6 per cent. Bank Indonesia left its benchmark BI-Rate unchanged at 5.75 per cent at its 20–21 October 2026 board meeting.
At an inauguration ceremony for senior officials, Suahasil instructed newly appointed treasury director-general Tri Budhianto to draft rules establishing the restriction’s legal foundation. He also called for proper implementation.
Suahasil said decisions on managing state cash should consider their consequences for the economy and financial sector. Government funds can be deposited at commercial banks, not just the central bank, so those choices affect how market interest rates are formed, he said.
A similar measure was pursued by Purbaya Yudhi Sadewa, finance minister in 2025–2026, for the ministry’s special mission vehicles. Purbaya said Himbara banks had complained of deposit interest costs reaching 8–9 per cent, which increased their funding costs and kept lending rates from declining.
