Indonesia reports Rp331.4 trillion in subsidies and maintains banking liquidity

Indonesia's financial and fiscal landscape shows significant activity across banking, subsidies, and social programs. The Ministry of Finance has realized Rp331.4 trillion in subsidies and compensation for energy and other sectors through August 2026, a 52.1% increase from the previous year. This rise is attributed to a shift toward monthly payments to state entities like PLN and Pertamina to maintain cash flow.

In the banking sector, the Otoritas Jasa Keuangan (OJK) reports that Himbara credit grew by 16.95% year-on-year in July 2026, driven by both state-owned enterprises and the private sector. While the loan-to-deposit ratio (LDR) rose to 88.38%, OJK maintains that industry liquidity remains adequate. To support this, the Ministry of Finance will extend the placement of Rp200 trillion from the State Budget Surplus (SAL) in banks until July 2027.

Social and religious fund management also reported key figures: the National Nutrition Fulfillment Program (MBG) has utilized Rp139.77 trillion (63.89% of its budget) to reach nearly 57 million beneficiaries. Meanwhile, the Hajj Financial Management Agency (BPKH) continues to manage Rp184 trillion using a conservative investment strategy, with 70% allocated to state sukuk. Additionally, OJK is urging banks to strengthen internal controls following corruption allegations related to mortgage distributions in Karawang.