Reforestation funds remain in SBIs<\/p>\n
JAKARTA (JP): The Ministry of Forestry would unload its Rp 1.2
\ntrillion (US$333 billion) in reforestation funds placed in Bank
\nIndonesia Certificates (SBIs) only if President Soeharto orders
\nto do so, the ministry's secretary-general said yesterday.<\/p>\n
Oetomo said the ministry would continue to roll over its SBIs
\nat maturity to help the monetary authority keep liquidity in
\ncheck.<\/p>\n
"The reforestation funds will remain in SBIs -- we'll wait for
\norders from the President directly or through the state
\nsecretary," Oetomo said at his office.<\/p>\n
He added that even the minister of forestry could not disburse
\nthe funds from Bank Indonesia, but the central bank could release
\nthe funds with the minister's approval.<\/p>\n
SBIs are short-term, rupiah-denominated obligations issued by
\nthe central bank to drain excess liquidity from the market.<\/p>\n
Minister of Forestry Djamaludin Suryohadikusumo said early
\nSeptember that his ministry had deposited at least Rp 1.2
\ntrillion of reforestation funds in SBIs in August to help the
\nfalling rupiah.<\/p>\n
He said reforestation funds collected by the ministry from
\nforestry companies totaled about Rp 2 trillion.<\/p>\n
Before being deposited in SBIs, most of the funds were kept in
\nthe country's seven state-owned banks, including Bank Rakyat
\nIndonesia, Bank Bumi Daya, Bank Tabungan Negara, Bank Pembangunan
\nIndonesia, Bank Negara Indonesia, Bank Dagang Negara and Bank
\nEkspor Impor Indonesia.<\/p>\n
Oetomo said the ministry would prefer to withdraw the funds
\nthan keep them in SBIs.<\/p>\n
"If we could choose, we would rather keep the funds in other
\nbanks, because they offer higher rates. But we keep them in SBIs
\nfor the country's sake," he said.<\/p>\n
The rates for SBI papers are 14 percent for one-day SBIs, 15
\npercent for two-day to six-day SBIs, 16 percent for one-week
\nSBIs, 20 percent for one-month SBIs, 19 percent for two-month
\nSBIs and 18 percent for three-month SBIs. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/reforestation-funds-remain-in-sbis-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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