TEMPO.CO, Jakarta - Indonesia's Finance Minister Purbaya Yudhi Sadewa has increased the government's placement of state funds in state-owned banks to Rp400 trillion (US$24.5 billion), aiming to ease tightening liquidity in the banking sector and support economic activity.
The funds come from the government's Budget Surplus Balance (SAL), which had previously been deposited at Bank Indonesia. According to Purbaya, the SAL balance held at the central bank stood at around Rp590 trillion.
He explained that of the roughly Rp300 trillion placed in members of the state-owned banking association (Himbara) in 2025, a significant portion had been withdrawn over the past several months, leaving about Rp170 trillion.
The government later increased the placement to Rp200 trillion before deciding to inject an additional Rp100 trillion in two phases by the end of the year. As a result, the total amount of government funds placed in Himbara banks will reach Rp400 trillion.
"Liquidity there has started to dry up," Purbaya said during a media briefing in Jakarta on Friday, June 26. "I told them I would return government funds to Himbara banks, and even increase them. The additional Rp100 trillion will provide greater flexibility and ensure sufficient liquidity in our banking sector."
Purbaya said the decision followed repeated complaints from state-owned banks about tightening liquidity. The government therefore chose to channel more of its budget surplus into Himbara banks to strengthen liquidity and maintain the flow of credit.
The finance minister stressed that the policy was not made unilaterally. He said the government had coordinated with President Prabowo Subianto before approving the additional fund placement, with both agreeing on the need to keep the economy moving.
"If the economy slows, investors become concerned and may pull out," Purbaya said. "But if growth prospects improve, investors will return. People tend to invest in countries with stronger economic momentum. That, in turn, should help strengthen the rupiah."
Purbaya also met with the chief executives of Himbara banks on Friday to discuss the additional fund placement. He said the executives welcomed the decision.
"They came into the meeting looking anxious and ready to voice their concerns. But once I explained the policy, they were happy," he said.
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