Himbara Requests Extension of SAL Fund Placement Tenor, OJK: We're Welcome to It

The Financial Services Authority (OJK), through its Chief Executive of Banking Supervision, Dian Ediana Rae, has responded to a request from the Association of State-Owned Banks (Himbara) to extend the placement tenor of funds from the Excess Budget Balance (SAL) to up to one year. He stated that the authority is open to further discussions with other stakeholders on the matter. “Yes, this is probably still in the context of discussion. Of course, if the banking tenor is extended, we are actually welcome to it. There is no problem, right?” Dian said at the Parliament Complex in Senayan, Jakarta, on Wednesday, 8 July 2026. “Actually, the longer the tenor, the better, in the sense that credit expansion becomes broader. The terms can be made longer,” he added. However, Dian noted that the matter still requires further dialogue with the Ministry of Finance and the Financial System Stability Committee (KSSK). “But that depends on our colleagues at the Ministry of Finance and also, of course, perhaps the KSSK, who will conduct this discussion,” Dian said. According to him, Himbara’s request to extend the SAL fund placement tenor to one year requires a period of adjustment and technical transition. Regarding the risks of the request, he assessed that there are no significant risks. “In my view, the risk is not too great. What I see is, of course, a transition period, as I mentioned previously. This is just a matter of an adjustment period, because banks manage public money, in total,” Dian said. “Whether it is government money or public money, it is blended, right? So, for withdrawals, when it is withdrawn, and so forth, if the amount is large, there must be a notification, so to speak,” he added. Previously, Finance Minister Purbaya Yudhi Sadewa rejected Himbara’s request to extend the SAL fund placement tenor to one year. Purbaya stated that the current scheme already provides sufficient flexibility to meet banking liquidity needs.