CORE: Additional Rp100 Trillion SAL Placement to Safeguard Financial System Stability

Jakarta (ANTARA) - Economist from the Center of Reform on Economics (CORE), Yusuf Rendy Manilet, believes that the additional placement of excess budget balance (SAL) funds worth Rp100 trillion into the banking sector is a relevant step to maintain the stability of the financial system. Yusuf, when contacted by ANTARA in Jakarta on Thursday, explained that this decision helps to ease liquidity in the short term. Moreover, the timing of this policy coincides with Eid al-Fitr, when economic activities and cash needs tend to be higher. “Therefore, from the perspective of financial system stability, this is a quite relevant step to ensure there is no liquidity pressure and transactions remain smooth,” said Yusuf. However, he underlined that this additional fund injection does not automatically encourage demand and consumption. This is because the SAL placement is still through the banking system, meaning its distribution depends on the banks’ response. According to Yusuf, banks usually tend to place the additional funds into safe instruments such as Government Securities (SBN), rather than directly channelling them as consumer or business credit. “So, its impact on consumption is more indirect. It can help maintain loose liquidity conditions, prevent interest rates from rising, and keep market confidence intact. But, the push for household demand is still more determined by other factors,” he said. Yusuf stated that public consumption is more influenced by people’s income, social assistance, or direct government spending to the public. Thus, the additional Rp100 trillion SAL serves more strongly as a stabilisation instrument than a consumption stimulus. “If the goal is truly to encourage demand, more direct instruments like social assistance or consumption incentives are usually far more effective because their effects are directly felt by the public,” he added. Previously, Finance Minister Purbaya Yudhi Sadewa stated that the government is adding Rp100 trillion in SAL fund placements to the banking sector. This addition is carried out a week before Eid al-Fitr to ensure liquidity remains maintained amid potential increases in funding needs. With this addition, the total SAL funds placed in the banking sector reach approximately Rp300 trillion.