Indonesian Political, Business & Finance News

Finance Minister Purbaya Ready to Channel Rp100 Trillion to Banking Sector with Greater Flexibility

| Source: CNBC Translated from Indonesian | Finance
Finance Minister Purbaya Ready to Channel Rp100 Trillion to Banking Sector with Greater Flexibility
Image: CNBC

Jakarta — Finance Minister Purbaya Yudhi Sadewa will increase fund placements in the banking sector by Rp100 trillion to bolster banking system liquidity.

This policy differs from the Rp200 trillion in funds placed by Purbaya since September 2025. The additional Rp100 trillion injection will operate under more flexible terms compared to the previously placed funds. The government can withdraw or add to this Rp100 trillion allocation at any time, unlike the Rp200 trillion placed as a six-month call deposit with Himbara (Association of State-Owned Banks).

“Perhaps another Rp100 trillion can flow in and out, meaning it is not tied to long-term deposits but rather short-term and flexible arrangements,” Purbaya stated during an Iftar gathering at the Finance Ministry headquarters in Central Jakarta on Monday, 9 March 2026.

With this more flexible scheme, the government can withdraw or increase funds as needed to meet liquidity requirements or state spending commitments. Purbaya acknowledged that unlike the Rp200 trillion previously placed, which derived solely from Surplus Budget Balance (SAL) and did not enter the government’s spending envelope, the additional Rp100 trillion would utilise funds that could otherwise be allocated to state expenditure.

“Once we reach Rp300 trillion, it sits idle somewhat, but the additional amount perhaps; rather than parking it at Bank Indonesia where banks cannot access it, we can shift it there to increase money circulating in the economy,” he explained.

He confirmed that the Rp100 trillion placement mechanism will maintain government fiscal flexibility. Funds placed in banks can be immediately withdrawn when needed for state spending, yet can be temporarily “parked” to support the economic system.

“When we need to spend, it can come out immediately. But before we use it, at least it can help the economic system,” Purbaya emphasised.

However, Purbaya did not specify when the fund injection into Himbara would be executed. He merely stressed that he has instructed the Director General of State Treasury, Astera Primanto Bhakti, to assess its implementation.

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