Bank Indonesia’s decision to raise its macroprudential liquidity incentive from 5.5% to 6% of third-party funds is expected to inject an estimated IDR 50 trillion to IDR 53 trillion into the financial system. While the central bank aims to ease systemic pressures and encourage credit growth, market analysts caution that the measure may fail to meaningfully accelerate bank lending.
According to UOB Kay Hian analyst Suryaputra Wijaksana, liquidity across the banking sector remains plentiful. However, rather than expanding loan portfolios, institutions are increasingly redirecting excess funds toward short-term government bonds (SBN) and central bank securities (SRBI). The attractive returns on SRBI have effectively positioned its yield as the primary benchmark rate, leading banks to favor these risk-free instruments over interbank lending and private sector credit. This trend is further reinforced by margin pressures on commercial loans, where intense rivalry for corporate clients and rising credit risk among retail borrowers continue to limit profitability.
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