Purbaya Plans to Add Rp100 Trillion in Bank Capital

JAKARTA - The Minister of Finance (Menkeu), Purbaya Yudhi Sadewa, plans to add government funds of Rp. 100 trillion to banks to increase liquidity in the financial system.

This policy is similar to the injection of Rp200 trillion funds into the State-Owned Bank Association (Himbara) previously. However, in this scheme, Purbaya wants to make the funds short-term and flexible.

"Later, maybe another Rp100 trillion can come in and out. This means that it is not tied to long-term deposits, but short-term and flexible," said Purbaya as quoted by ANTARA, Friday, March 6.

In the previous placement of funds, the scheme used was a depositoncallwith a tenor of six months.

Meanwhile, in the new fund injection, the scheme is made more flexible so that it can be withdrawn immediately when the government needs funds to finance state expenditures.

Another difference relates to the source of funds. In the previous injection of funds, the source of the budget used came from the Surplus Budget Balance (SAL) which was not included in the state budget limit.

Meanwhile, for the injection of Rp100 trillion later, Purbaya plans to use funds from government spending at Bank Indonesia (BI) that have not been absorbed.

"If the one up to Rp300 trillion is already unemployed, but the additional one may be. Instead of being put in BI, the banking sector does not have access, we move it (banking) to add money in the economic system," said Purbaya.

"If later we want to spend it, it can go out immediately. But, before using it, at least it can help the economic system," he added.

Even so, the Minister of Finance has not confirmed when the placement of the funds will be carried out. So far, he is still asking the Director General of the Treasury, Astera Primanto Bhakti to review this plan.

As previously reported, the Minister of Finance extended the placement of government funds of Rp. 200 trillion in banks until September 2026.

"The placement of Rp200 trillion when it matures on March 13, 2026, will be immediately extended for the next six months. So, banks don't have to worry about losing liquidity, because the government will continue to support liquidity in the market," said Purbaya.

The evaluation of the policy will be carried out again in September.

Previously, the government placed funds amounting to Rp. 276 trillion sourced from SAL to five member banks of the State-Owned Bank Association (Himbara) and one regional development bank (BPD). The details are, Bank Mandiri, BRI, and BNI each received Rp. 80 trillion, BTN Rp. 25 trillion, BSI Rp. 10 trillion, and Bank DKI Rp. 1 trillion.

Of the total, Rp75 trillion was then withdrawn to be spent to support central and local government spending.