“When Indonesia’s monetary engines have been fully revved, interest rates lowered and government funds injected into state-owned banks, many expect the economy to accelerate.
Yet the ship barely moves. Liquidity is abundant, but the economy is idling. Money sits still, credit growth is weak, investment hesitant and household spending subdued. The question arises: are we heading toward, or already caught in, a liquidity trap?
As of August, credit growth stood at 7.56 percent year-on-year (yoy), down from 7.77 percent in June, according to Statistics Indonesia (BPS), far below the pace required to sustain solid expansion. Banks are awash with cash, yet borrowers remain reluctant.
It is a worrying picture: liquidity in excess, but productive lending and investment failing to follow. Both households and businesses seem stuck in wait-and-see mode, echoing the classic signs of a liquidity trap, monetary stimulus flowing, but transmission to the real sector jammed.”
Baca selengkapnya di https://www.thejakartapost.com/opinion/2025/11/21/liquidity-trap-confidence-crisis-amid-monetary-abundance.html
Penulis: Pristanto Silalahi
Editor: Angelina Komala
