Another Rp100 Trillion Injection into Banking, Finance Minister Purbaya: We Are Serious About Maintaining Liquidity in the Financial System
The government has once again added a placement of excess budget balance (SAL) funds amounting to Rp100 trillion into the banking sector. With this addition, the total SAL funds placed in banks now reach approximately Rp300 trillion.
Indonesia’s Finance Minister Purbaya Yudhi Sadewa stated that the additional funds are being channelled ahead of Eid al-Fitr to ensure liquidity remains stable amid potential increases in funding needs.
“A week before Eid, I added another Rp100 trillion, injecting it into the economic system. We are seriously maintaining liquidity in the financial system,” said Purbaya in Jakarta on Wednesday, 25 March 2026.
He explained that this step is taken in response to market dynamics, particularly the rise in bond yields which indicate liquidity pressures in the banking sector. The government is actively monitoring yield movements to assess liquidity conditions. A sharp rise in yields signals a shortage of funds in the banking system.
“If the bond yield rises by 0.1 percent, I already take notice. If it rises by 0.4 percent, there is definitely a drought, a liquidity shortage in the banks. I check, and yes, the banks are short (on liquidity). So I add more by injecting into the system,” he said.
He further explained that placing funds in banks can also impact the bond market, particularly in curbing yield increases. Regarding fund distribution, Purbaya noted that SAL placements are done flexibly and are currently focused on certain banks. He gave an example of one regional bank that received the placement.
“Bank DKI alone received Rp2 trillion, if I’m not mistaken,” said the Finance Minister.
Meanwhile, for private banks, he indicated that they are not yet a priority in the initial stage.
As is known, the government had previously placed around Rp200 trillion in funds. With this latest addition, the total liquidity intervention through government fund placements has grown significantly to Rp300 trillion.
Purbaya emphasised that the fund placements are conducted flexibly and form part of the national cash management strategy. This approach also aims to prevent yields from rising too sharply. With the additional liquidity, banks are expected to have room to purchase bonds, thereby easing pressures in the market.