It Is Feared That The DPR, Sri Mulyani's Subordinates, Will Ensure That The Issuance Of SBN Is Not Impaired About Bank Liquidity

JAKARTA - The government through the Director General of Financing and Risk Management of the Ministry of Finance (Kemenkeu) of Suminto ensures that the issuance of Government Securities (SBN) by the government will not interfere with banking liquidity.

According to Suminto, his party has properly calculated aspects of potential and risk for efforts to fulfill the country's finances.

"Our assessment with BI, OJK and banks so far has not caused crowds out of banks, including in third-party funding competitions (DPK)," he said when he received questions from members of Commission XI of the DPR at the Senayan Parliament Complex, Jakarta on Tuesday, February 7.

Suminto explained that the current condition of banking liquidity is still maintained and tends to be loose due to intermediation activities that have not fully recovered. In addition, in terms of net issuance of retail SBN, it is considered to have no significant impact on the financial services industry.

For example, in 2022 we issued retail SBN with a nominal value of Rp107 trillion, now we absorb this from the market. But in the same year there was an SBN which matured at Rp84 trillion which we issued from the state budget. So net we only absorb from investors Rp23 trillion," he said.

So, continued Suminto, for large banks with thousands of trillions of assets and DPK, the value of issuance of retail SBN is small.

"This has not caused crowding out in our banks," said Sri Mulyani's subordinate to the council members.

VOI noted that in the 2023 State Budget, the government needed debt financing of IDR 969.4 trillion. Of this amount, 90 percent to 95 percent will be met through the SBN issuance method. While the rest will be fulfilled from domestic and foreign loans.

Meanwhile, the government's debt until December 2022 is IDR 7,733.99 trillion, equivalent to 39.57 percent of gross domestic product (GDP).