Finance Minister Purbaya Rejects Himbara's Request to Extend SAL Fund Tenor

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa has rejected a request from the Association of State-Owned Banks (Himbara) to extend the tenor for the placement of funds from the Excess Budget Balance (SAL) by one year.

Speaking to journalists at the Parliament Complex in Jakarta on Tuesday, Purbaya explained that the current scheme already provides adequate flexibility to meet banking liquidity needs. He noted that this scheme also serves to balance banking requirements with the government’s cash position.

There are concerns that extending the tenor could jeopardise the government’s readiness to anticipate funding requirements outside of the planned budget. The Finance Minister stated that the current operational scheme was designed to ensure the government retains the flexibility to withdraw funds whenever necessary.

Over time, Bank Indonesia (BI) will also increase funds to maintain adequate liquidity within the financial system.

“Slowly, BI will also replenish the funds. If we withdraw funds, BI will step in to fill the gap. Therefore, gradually, the money supply in the system will become more stable than before,” said the Finance Minister.