OJK Proposes Extension for Placement of Excess Budget Funds in State Banks

The Financial Services Authority (OJK) has proposed that the government extend the placement of Excess Budget Balance (SAL) funds in several banks that are members of the Association of State-Owned Banks (Himbara). The request was conveyed during a closed meeting between the Financial System Stability Committee (KSSK) and the House of Representatives at the parliament complex in Senayan, Jakarta, on Monday, 20 July 2026.

Previously, the government had decided that the maturity date for the placement of the Rp 200 trillion SAL would be extended until the end of December 2026. However, the OJK believes the government could extend the placement period further.

“If possible, the term could be extended, although that is of course up to the Minister of Finance,” said the Chief Executive of Banking Supervision at the OJK, Dian Ediana Rae, after the meeting.

Dian stated that the OJK also proposed that any decision to withdraw the funds be carried out in stages, following banking mechanisms. He explained that banks need time to adjust between their lending portfolio and their third-party funds (DPK). Credit is typically disbursed for long terms, whereas DPK flows are short-term, meaning banks require time to meet large-scale withdrawal demands. “If the amount is large, it must be done in stages, that is the point,” he said.

Finance Minister Purbaya Yudhi Sadewa had initially moved approximately Rp 200 trillion in government cash from Bank Indonesia to state-owned banks on 12 September 2025. As the maturity date approached in September 2026, there were widespread reports that the SAL funds had been gradually withdrawn. The State Treasurer confirmed that the funds had been slowly pulled back. However, after meeting with Himbara leaders, Purbaya decided to return the money to the banking system and extend the placement period until the end of the year. “There was Rp 170 trillion there, I returned it to Rp 200 trillion for the long term. I added another Rp 100 trillion maybe for 3-4 months, and then another Rp 100 trillion in flexible funds,” he said during a press conference at the Ministry of Finance office on Friday, 26 June 2026.