Indonesian state banks expect lending boost from reserve cuts
BTN estimates additional liquidity of Rp6 trillion to Rp8 trillion, while BNI says greater financing capacity must be matched by prudent risk management.
Indonesia’s state-owned banks welcomed Bank Indonesia’s decision to lower reserve requirements, saying the move could provide more room for lending and business growth. The central bank approved the changes at its October 2026 monthly board meeting, with implementation starting on 1 November 2026.
Conventional banks’ reserve requirement will fall in stages from 9 per cent to 7 per cent. For Islamic banks and Islamic banking units, the requirement will decline from 7.5 per cent to 6.5 per cent on 1 November 2026, then to 5.5 per cent on 1 December 2026.
Bank Tabungan Negara president director Nixon L.P. Napitupulu said the freed-up funds could support lending. Speaking in Bandung on 23 October, he estimated that BTN could gain Rp6 trillion to Rp8 trillion in liquidity, but said he had asked its treasury team to calculate the precise impact.
Bank Syariah Indonesia president director Anggoro Eko Cahyo said on 28 October in South Jakarta that the easing would give the bank greater flexibility to grow.
Bank Negara Indonesia said additional liquidity could expand banks’ financing capacity, provided they maintained prudent practices and adequate risk management. Corporate secretary Okki Rushartomo said BNI would continue financing productive sectors and supporting national development through quality lending and cooperation with the government, regulators and fellow state-owned banks.
Hery Gunardi, chairman of banking association Perbanas and president director of Bank Rakyat Indonesia, said on 21 October that lower reserve requirements could improve market liquidity. He expected lending to increase and banks’ loan-to-deposit ratios to improve.
