SAL Funds Deemed Suitable for APBN Deficit

Executive Director of the Center of Economics and Law Studies (Celios), Bhima Yudhistira, assesses that the Surplus Budget Balance (SAL) could be allocated as a reserve to prevent the widening of the 2026 State Revenue and Expenditure Budget (APBN) deficit. “From the APBN perspective, SAL is actually needed as a reserve for deficit expansion, particularly from energy subsidies,” said Bhima, as quoted from Antara on Friday, 27 March 2026. He explained that if oil prices are at the level of US$90–110 per barrel, the APBN would require an additional approximately Rp 126 trillion to cover energy subsidies. “The government could draw from SAL, rather than implementing essential budget efficiencies. If the SAL has already been turned into credits and circulated, there would be a mismatch if the government needs additional budget,” he stated. Meanwhile, according to Bhima, the additional SAL funds worth Rp 100 trillion to the banking sector do not precisely target the root of the problem. He assesses that the issue on the credit side lies in low demand, rather than banking liquidity. As of January 2026, the undisbursed loan facilities in banks still amounted to Rp 2,506.47 trillion, or 22.65 percent of the available credit ceiling. In other words, he said, the figure for idle credits remains high. Meanwhile, the growth in micro, small, and medium enterprise (MSME) credit for the same period was pressured to 0.5 percent. Home Ownership Credit (KPR) and Apartment Ownership Credit (KPA) also grew below the general credit growth of around 5.5 percent. “There is concern that the additional SAL injection will increase the amount of idle credits in Himbara banks. Meanwhile, if forced into programmes like credit for the Red White Village Cooperative (KDMP) or partners of the Free Nutritious Meal (MBG) programme, it could lead to a decline in credit quality,” he said. Finance Minister Purbaya Yudhi Sadewa previously stated that he had added another placement of SAL funds amounting to Rp 100 trillion to the banking sector. This additional funding was carried out a week before Lebaran to ensure liquidity remains maintained amid potential increases in funding needs. With this addition, the total surplus budget balance funds placed in the banking sector reach approximately Rp 300 trillion.