Government Ready to Add Placement of Funds at Bank, Purbaya Optimistic Economy Will Strengthen

JAKARTA - Minister of Finance Purbaya Yudhi Sadewa emphasized that the government is ready to increase the placement of funds in the banking sector as an effort to strengthen the recovery of the national economy.

Purbaya revealed that in mid-June, a number of banks expressed concerns about liquidity pressures.

"Yes, if that is the case, I will put the Rp200 trillion in the banking system until the end of the year, maybe I will extend it until next year and I will add another Rp200 trillion from my money in the Indonesian bank that is unemployed. That is to ensure that people's purchasing power is maintained or not, to ensure that our financial system can support faster economic growth," he said at the GAIKINDO International Automotive Conference, Tuesday, August 4.

Purbaya explained that the government had previously disbursed the Balance of Budget Surplus (SAL) fund worth Rp. 400 trillion to banks that were members of the State-Owned Bank Association (Himbara).

According to him, the policy is considered to have started to have a positive impact on increasing public demand, including in the motor vehicle purchase sector.

"It should be now, two weeks ago I injected again the money of Rp. 400 trillion. It should be now that the demand for cars and motorcycles has started to recover," he said.

He also conveyed that the government would again add funds to banks today, if liquidity was still considered insufficient to encourage stronger economic growth.

"If it is still lacking, today I will add it again until the amount is sufficient in the economy," he said.

According to Purbaya, the addition of liquidity is aimed at ensuring that the financial system has adequate capacity to increase credit distribution so that it can support higher economic growth.

"As long as I am the Minister of Finance, I will continue to maintain the conditions in the economy to ensure that our demand is well maintained and there is enough money to boost the economy," he concluded.