Purbaya Refutes Claim That Idle Government Funds Benefit the Economy, Says They Drive Credit

JAKARTA – Finance Minister Purbaya Yudhi Sadewa has rejected the notion that government funds placed in banks do not benefit the economy. He said that the placement of government funds helps to uphold banking liquidity, accelerate credit growth, and support the real sector amid global economic pressures. Purbaya said the government, in partnership with Bank Indonesia, is strengthening coordination of fiscal and monetary policy to keep growth intact, particularly through reinforcing liquidity in the financial system. ‘If you look at base money M0 in April, it grew by 14.1 percent. So there is enough money in the economy to push growth,’ Purbaya told a press conference at the APBN KiTa edition for April 2026 in Jakarta on Wednesday (19/5/2026). The situation is seen as potentially risking dragging down private sector and real sector activity. Therefore, the government and the central bank are increasing liquidity so that broad money growth returns to double digits. One of the steps taken is to place Rp200 trillion of the surplus budget funds (SAL) in Himbara (Himpunan Bank Milik Negara). According to Purbaya, this step helps strengthen banking liquidity so that credit growth accelerates and economic activity remains moving. ‘So many people say, oh the money has no use. It turns out the money is useful,’ he said. Purbaya sees the synergy of fiscal and monetary policy beginning to show its impact on national economic growth. This is reflected in Q1 2026 GDP growth of 5.61 percent. He noted that growth is not only supported by government spending but also driven by the private sector through credit expansion. ‘Because credit is growing faster, it is enough to push private sector growth. In the first quarter of 2026, it grew by 5.61 percent. That is the impact of the policies we are implementing,’ he said. Purbaya even teased those who previously doubted the effectiveness of the policy.