RRI.CO.ID, Jakarta - Bank Indonesia (BI) has assured that banking sector liquidity remains stable, enabling banks to carry out their intermediary functions. BI said the resilience of liquidity is reflected in the decline of the Indonesia Overnight Index Average (INDONIA).

“INDONIA, which reflects interbank interest rates, briefly reached 6.62 percent on June 18, 2026. By July 16, it had fallen to 6.17 percent,” Senior Deputy Governor Destry Damayanti said in a written statement on Friday, July 17, 2026.

Destry explained that the decline in INDONIA indicates reduced pressure on liquidity demand in the interbank money market, allowing banks to meet short‑term funding needs at lower cost.

“These conditions show that money market liquidity remains adequate. BI is also expanding liquidity through various monetary instruments, including repurchase agreements (repos), foreign exchange swaps, and purchases of government bonds (SBN) in the secondary market,” she said.

BI’s statement addressed reports of liquidity difficulties in the banking sector stemming from tight monetary policy, which could affect banks’ ability to extend credit.

As of July 16, BI’s liquidity expansion through monetary operations reached IDR 837.11 trillion (around USD 46.66 billion). This strategy has also supported double‑digit growth in the money supply, which rose 12.8 percent year‑on‑year at the end of June.

BI pledged to continue communicating with banks to address obstacles to the distribution of interbank liquidity. Monitoring and supervision will also be strengthened to ensure market behavior remains within reasonable limits.

“In the future, BI will continue to monitor and ensure sufficient liquidity so that monetary policy transmission remains effective, particularly to reinforce stability and drive economic growth,” Destry concluded. (Gusti Panji)