JAKARTA, June 29 (Xinhua) -- The Indonesian Ministry of Finance has extended the placement of 281 trillion rupiahs (about 15.7 billion U.S. dollars) in state cash funds with state-owned banks that are members of the Association of State-Owned Banks through the end of December 2026, a senior official said Monday.

People gather to watch a performance during celebrations marking Jakarta's 499th anniversary in Jakarta, Indonesia, June 27, 2026. (Photo: Xinhua)

Deputy Finance Minister Juda Agung said that the ministry has also set aside an additional 100 trillion rupiahs in standby funds that could be used if banks require additional liquidity.

According to Agung, the decision stemmed from the banking sector's ongoing need for liquidity support to sustain lending. With credit demand from businesses remaining robust, ensuring adequate bank liquidity is important.

Agung expressed confidence that banking credit growth would remain in double digits in the coming months after credit expanded 11.5 percent year-on-year in May.