RELEASE LIQUIDITY

On Track

Redirecting Rp 340T (~$20B) of SOE Capital into National Development Projects

Next Actions

4 Items

$20B liquidity release mechanism — April 2 meetingImmediate

Proposal is fully prepared across all three channels. Alignment across relevant ministries and Danantara required. First tranche of Rp 60T ($3.5B) available from bonds already maturing in Q2 2026.

Vestro–Danantara subsidiary contract pending signature — licensing pathway ready to activateImmediate

A Danantara subsidiary will obtain all required licenses for the retail investment platform. Contract between Vestro and the Danantara subsidiary is the single action needed to begin the licensing process. Significantly faster than a conventional fresh application.

SOE bank capital redeployment framework — Danantara coordination pendingThis Week

With Himbara banks under Danantara, redirecting maturing bond capital into Danantara-aligned development projects is a structural extension of existing governance. No new legislation required. First tranche ready Q2 2026.

DJPPR issuance calendar alignment — external investor channel ($5B) pending activationThis Week

External investors are arranged. Ministry of Finance (DJPPR) sync ensures zero gap in government funding while Channel 3 activates alongside Channels 1 and 2.

Purpose

Indonesia's state-owned enterprise banks (Himbara) currently hold Rp 730 Triliun (~$43 billion) in government bonds earning 6-7% — capital that is safe but economically unproductive. This initiative releases Rp 340 Triliun (~$20 billion) of that capital into productive national development: infrastructure, cooperatives, and manufacturing at 8-12% returns. The mechanism requires no new debt, no foreign capital, and no regulatory breach. In parallel, a domestic retail and corporate investment platform enables Indonesian citizens and institutions to deploy capital into national development in IDR — directly reducing structural reliance on foreign capital inflows and strengthening Indonesia's sovereign financial position. The India precedent is instructive: Indian domestic retail investors now deploy nearly $1 trillion annually into capital markets, a transformation that occurred over 15 years. Indonesia has the same structural potential — and the conditions to begin that trajectory now.

Start Date

Apr 1, 2026

Expected Completion

Jun 30, 2027

Progress

25%

Phase

Phase 1

Timeline & Milestones

Apr 1, 2026Jun 30, 2027

Joint Ministerial Discussion — Liquidity Release

Q2 2026 — First Tranche Released ($3.5B)

Q3-Q4 2026 — Ramp Up ($8.5B → $15B Cumulative)

Policy Directive Issued to SOE Banks

Domestic Investment Platform Licensed (OJK)

Q1 2027 — Full $20B Deployed

Today

current

upcoming

Description

The liquidity release operates through three coordinated channels totalling $20B over five quarters. Bank Indonesia absorbs maturing bonds through existing open market operations ($8B). Banks redirect maturing bond capital into infrastructure project financing at 8-12% returns versus 6-7% on government paper ($7B). International investors — already arranged — replace maturing issuances, freeing domestic bank capital ($5B). With Himbara banks transitioning under Danantara's mandate, redirecting maturing bond capital into Danantara-aligned development projects is a natural extension of the existing governance structure. The retail and corporate investment platform (Vestro) serves as the distribution mechanism for mobilising domestic IDR capital — reducing the perception and reality of needing foreign money every time Indonesia requires development financing. Licensing for Vestro is being obtained through a Danantara subsidiary, which acquires all required regulatory approvals and holds them within the national development framework — significantly accelerating the path to operation versus a conventional fresh licensing application. Release schedule: Q2 2026 Rp 60T ($3.5B) → Q3 Rp 85T ($8.5B) → Q4 Rp 110T ($15B) → Q1 2027 Rp 94T ($20.5B total).

Phase Timeline

Phase 0 — Presidential Instructions (April 2026)

Issue all three required instructions. No new legislation needed. Uses existing mechanisms.

Upcoming

Channel 1 — Bank Indonesia Absorption (Rp 136T / $8B)

Bank Indonesia absorbs maturing bonds through existing open market operations. Proven mechanism — already holds significant government securities.

Upcoming

Channel 2 — Infrastructure Bond Swap (Rp 119T / $7B)

Banks swap government bonds for infrastructure project financing. Same capital, higher returns (8-12% vs 6-7%). Directly funds development.

Upcoming

Channel 3 — External Investor Replacement (Rp 85T / $5B)

International investors (already arranged) purchase new issuances at maturity. Indonesia gains external capital while freeing domestic bank capital.

Upcoming

Action Items

Prepare briefing materials for April 2 ministerial discussion on liquidity release

Legal Team·Overdue: Apr 1

Critical

Danantara subsidiary — initiate all required regulatory license applications

Regulatory Affairs·Due: Apr 10

Critical

Execute contract between Vestro and Danantara subsidiary for licensing acquisition

Strategy Team·Due: Apr 30

Critical

Draft SOE bank bond redeployment policy framework for Danantara alignment

Legal Team·Due: Apr 10

High

Align DJPPR new issuance calendar with external investor placement

Finance Lead·Due: Apr 15

High

Confirm BRI, BNI, Mandiri Q2 2026 bond maturity schedule — first tranche identification

Finance Lead·Due: Apr 20

High

Identify Danantara-aligned infrastructure project pipeline for Channel 2 bond swap

Strategy Team·Due: Apr 30

High

Develop Indonesia domestic capital market participation roadmap (India benchmark analysis)

Strategy Team·Due: May 15

Medium

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Progress updates will appear here as milestones are reached.