Bank Mandiri affirms additional SAL funds will be channelled to productive sectors
PT Bank Mandiri (Persero) Tbk has affirmed that the additional placement of Saldo Anggaran Lebih (SAL) funds from the Ministry of Finance will be managed prudently and channelled selectively to productive sectors, with a focus on strengthening a people-based economy.
“Bank Mandiri is committed to ensuring that the distribution is carried out effectively, transparently, and provides optimal impact for the business world and the wider community,” said Bank Mandiri Corporate Secretary Adhika Vista in his statement in Jakarta on Friday.
In general, Adhika stated that the company fully supports the policy of additional fund placement by the Ministry of Finance.
This step is seen as part of efforts to maintain stability and encourage national economic growth.
Previously, Indonesian Finance Minister Purbaya Yudhi Sadewa stated that the government is again adding SAL fund placement of Rp100 trillion to the banking sector.
With this addition, the total SAL funds placed in the banking sector reach approximately Rp300 trillion.
The additional funds are being channelled ahead of Eid to ensure liquidity remains maintained amid potential increases in funding needs.
This step is taken in response to market dynamics, particularly the rise in bond yields which indicates liquidity pressure in the banking sector.
In response to this, OJK Banking Supervisory Executive Head Dian Ediana Rae, when met at the Supreme Court (MA) in Jakarta on Wednesday (25/3), welcomed the Ministry of Finance’s step positively because it helps banking liquidity.
In addition, the SAL placement in banking also increases liquidity, thereby suppressing funding costs (cost of funds). Dian also noted that the provision of special rates shows a downward trend, reflecting a reduction in the intensity of interbank competition in raising funds.
“That (additional SAL) is very helpful, so the tendency (for lending rates) to follow the BI-Rate can be achieved more quickly,” said Dian.
Regarding the possibility of fund placement in Government Securities (SBN), she explained that basically, placement of funds in such instruments is only temporary.
However, Dian emphasised that the main goal of banking remains to extend credit. With SBN yields currently around 6 percent, while lending rates can reach 9-10 percent, banks will ultimately prefer to channel funds as credit when demand increases.
“If temporary, there’s no problem in my view. That’s an effort so that banks don’t idle their money. And I think, if they buy SBN, that’s actually helping the country. It comes back to helping the country for fiscal financing,” said Dian.