Minister Of Finance Purbaya Reveals The Effect Of Liquidity Injection Into The Real Sector Feels In 4 Months

JAKARTA - Finance Minister Purbaya Yudhi Sadive estimates that the time needed until the real sector begins to take credit from banks will take about 4 months and the effect will begin to be felt in the near future.

He explained, when compared to international ones such as in the United States, for example, the effect of injecting money into the system is usually felt after about 14 months.

However, in Indonesia, usually within 4 months the effect has begun to appear.

"If we look at the delay from the money injection to the system in America, he said 14 months. If you are here, it usually looks 4 months later, right," he told reporters at the Head Office of the Director General of Taxes, Tuesday, September 16.

He said that in 2021, when the Government began injecting liquidity into the system, the impact had begun to be seen in half to one month, and positive credit directions had begun to appear.

Therefore, Purbaya is optimistic that in the not too distant future, the national economy will begin to grow.

Purbaya emphasized that the placement of funds amounting to Rp200 trillion in state-owned bank sets (Himbara) will have a broad positive impact on the national economy.

According to Purbaya, these additional funds can encourage the banking system to work more actively in disbursing credit.

"If we look at the experience in 2021, the credit is still weak at that time. At that time the government added money to its credit system, it could also grow," he said.

He conveyed that by increasing funds into the banking system, liquidity will automatically increase and when liquidity increases, so that banks can lower deposit interest rates.

According to him, this has caused people who previously enjoyed keeping money in the bank because the interest was high, began to switch to spending their money when the deposit interest decreased.

In addition, Purbaya said that demand (demand) in the market will increase, and companies that were initially reluctant to borrow money due to high interest rates will start to dare to access credit because funds in banks are more available and interest is lower.

"But with that money they have the courage to borrow money from the bank. This means that the supply and demand side will grow together," said Purbaya.

According to him, this is the purpose of the policy that is encouraged not only to increase money in the system excessively, but to add liquidity to a measurable and safe level.

Purbaya estimates that the growth of base money (primary money) above double digits is sufficient to boost economic growth, without causing overheating or excessive inflation due to a surge in demand (pull inflation).

"So it should be with an injection like that the economy will run," he explained.

Purbaya said that his party wanted to encourage the economic system to move, such as providing fuel so that the engine would run.

"I forced the system to work with me to give fuel, which if they didn't use they had to pay me. So this is actually the basic principle of the monetary policy," he explained.

Menanggapi kekhawatiran terkait potensi inflasi, Purbaya menilai hal tersebut belum menjadi ancaman dalam waktu dekat, selama ekonomi nasional masih berada dalam kondisi lemah, dana yang disuntikkan akan terserap oleh sistem keuangan.

Dia menambahkan, inflasi, baru kemungkinan muncul apabila pertumbuhan ekonomi sudah berada di atas kisaran 6,5 hingga 6,7 persen.

“Sebagian orang bilang kalau uang di inject sistem akan menimbulkan inflasi. Iya mungkin kalau jangka panjang dan uangnya kebanyakan. Ini kan kita kemarin lesu ekonominya dengan adanya itu pasti akan diserap sistem, dan belum akan menimbulkan inflasi sampai mungkin beberapa tahun ke depan sampai pertumbuhan ekonomi kita di atas 6.5-6.7 persen," ujarnya.

- https://voi.id/ekonomi/515033/menkeu-purbaya-kritik-bank-yang-enggan-salurkan-kredit-ke-sektor-produktif

- https://voi.id/ekonomi/515044/ojk-nilai-likuiditas-bank-himbara-membaik-ldr-turun-setelah-suntikan-dana-pemerintah

- https://voi.id/ekonomi/515064/diisukan-phk-karyawan-imbas-bbm-kosong-shell-indonesia-buka-suara

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Responding to concerns regarding potential inflation, Purbaya assessed that this had not become a threat in the near future, as long as the national economy was still in a weak condition, the funds injected would be absorbed by the financial system.

He added that inflation is only possible if economic growth is already above the range of 6.5 to 6.7 percent.

Some people say that the money in the system's inject will cause inflation. Yes, maybe in the long term and the money is mostly. Yesterday, we were sluggish, the economy with which the system would definitely be absorbed, and would not cause inflation until maybe in the next few years until our economic growth was above 6.5-6.7 percent," he said.