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

Finance Minister Purbaya Yudhi Sadewa has rejected a request from the Association of State-Owned Banks (Himbara) to extend the placement tenor of funds from the Excess Budget Balance (SAL) to one year. Purbaya explained that the current scheme already provides adequate flexibility to meet banking liquidity needs while balancing the requirements of the banking sector with the government’s cash position. He expressed concern that extending the tenor could disrupt the government’s readiness to anticipate funding needs outside the budget plan. “So the Rp 200 trillion is until the end of the year, the Rp 100 trillion is reviewed every three months, and the other Rp 100 trillion can flow in and out, it is flexible. Because we also have to anticipate if we, the government, need funds,” Purbaya said at the House of Representatives in Senayan, Jakarta, on Tuesday, 7 July 2026. He assured that the current scheme is designed to allow the government the flexibility to withdraw funds at any time when required. Over time, Bank Indonesia will also inject funds to maintain sufficient liquidity in the financial system. “Gradually, Bank Indonesia will also top up. If we withdraw funds, BI will fill in. So, slowly, the money supply in the system will be more stable than before,” he stated. Purbaya confirmed that the additional distribution of SAL funds to Himbara is already underway, though he did not detail the amount allocated to each state-owned bank. “It has been distributed. It is Rp 200 trillion, plus Rp 100 trillion, plus Rp 100 trillion. Perhaps the division is proportional, but I forget,” he said. The Financial Services Authority (OJK) previously viewed the placement of government SAL funds in Himbara as supportive of banking liquidity, fostering healthier and more measured competition for funds and interest rates. In general, the OJK considers the policy of placing a portion of government SAL funds as helpful for bank funding, particularly in meeting or anticipating short-term liquidity needs. Furthermore, the additional funding source strengthens banks’ ability to perform their intermediation function and encourages a reduction in the cost of funds in line with their fund management capabilities and strategies.