CELIOS Assesses SAL Injection as a Reserve to Safeguard Budget Deficit

Jakarta (ANTARA) - Bhima Yudhistira, Executive Director of the Center of Economics and Law Studies (CELIOS), assesses that the Excess Budget Balance (SAL) could be allocated as a reserve to prevent the widening of the State Revenue and Expenditure Budget (APBN) deficit. “From the APBN perspective, SAL is actually needed as a reserve for the widening deficit, particularly from energy subsidies,” said Bhima when contacted by ANTARA in Jakarta on Thursday. He explained that if oil prices are at the level of US$90–110 per barrel, the APBN would require an additional Rp126 trillion to cover energy subsidies. “The government could take from SAL, rather than implementing essential budget efficiencies. If the SAL has already been turned into credits and circulated, there would be a mismatch if the government needs additional budget,” he added. Meanwhile, he views the additional Rp100 trillion SAL injection to the banking sector as not precisely targeting the root problems. According to him, the issue on the credit side lies in low demand, rather than banking liquidity. As of January 2026, the undisbursed loan facilities in banking are still Rp2,506.47 trillion or 22.65 percent of the available credit ceiling. This means, he said, the amount of idle credit remains high. Meanwhile, micro, small, and medium enterprise (MSME) credit growth in the same period contracted by 0.5 percent. Home Ownership Credit (KPR) and Apartment Ownership Credit (KPA) also grew below the general credit growth of around 5.5 percent. “There is concern that the additional SAL injection will increase the amount of idle credits in Himbara banks. Meanwhile, if forced into programmes like credit for the Red and White Village Cooperative (KDMP) or partners of the Free Nutritious Meals (MBG), it could lead to a decline in credit quality,” he stated. As a note, Finance Minister of the Republic of Indonesia Purbaya Yudhi Sadewa has again added SAL fund placements of Rp100 trillion to the banking sector. This fund addition was carried out a week before Eid to ensure liquidity remains maintained amid potential increases in funding needs. With this addition, the total SAL funds placed in the banking sector reach around Rp300 trillion.