JAKARTA - Finance Minister Purbaya Yudhi Sadewa explained that the surge in debt withdrawals in Semester I 2026 and the potential for more financing of the Budget (SiLPA) of Rp. 255.5 trillion in the 2026 State Budget are part of the government's cash management strategy.
This policy is implemented to ensure that the state's cash position remains at a safe level while maintaining the availability of liquidity in the implementation of the State Budget.
Purbaya said the government chose to issue debt securities early when the state's cash balance began to approach the minimum limit that had been set, and this step was taken so that the government had enough cash reserves and did not need to take emergency steps to find funding.
"At one point I saw that the cash was too low below a certain level. So I ask that we don't allow the cash to be below a certain level. So we issue debt letters at times faster than usual so that our buffer is sufficient, never panic to run to banks or to anyone because we don't have money," he told the media, quoted, Wednesday, July 15.
He explained that the acceleration of the withdrawal of financing had led to the emergence of the Budget Financing Surplus (SiLPA) temporarily because the realization of government spending had not been as fast as the disbursement of financing.
However, Purbaya ensured that SiLPA at the end of the year would remain at a limited level, because the 2026 State Budget was still being drafted in a deficit condition so that the financing funds would ultimately be used to meet budgetary needs.
"Automatically because the budget is not all as fast as it is, there is SiLPA, but until the end of the year there must be a little SiLPA, why? Because our budget is in deficit. So this must be over, "he said.
Purbaya also dismissed the assumption that the proceeds from debt issuance were only kept as cash reserves.
According to him, some of the funds were placed in the banking sector to strengthen liquidity so that banks have more room to channel credit to the business world.
"To make our cash safe. Some of it is also used to build the economy, right. I put it in the bank, right. So what? So that the bank can give credit," he explained.
He assessed that the policy also contributed to improving economic activity in recent months, because with proper cash management, the government hopes that economic growth can be driven to around 6 percent.
"The economic recovery that has occurred so far, among other things, is also due to the money from the government in the banking sector. That is what helped our economy in the last 2-3 months. Maybe 3-4 years. So we can push the development towards 6 percent. But for that I need a proper cash management," he said.
Previously, the Chairman of the House of Representatives Budget Agency (Banggar) Said Abdullah asked the government to evaluate the 2026 state budget financing strategy.
The request was conveyed after the SiLPA projection was estimated to still reach Rp255.5 trillion by the end of the year, while the realization of debt financing in Semester I 2026 had penetrated Rp477.4 trillion or increased by around Rp162 trillion compared to the same period last year.
According to Said, the high projection of SiLPA indicates that the increase in debt financing has not been fully followed by an acceleration in government spending and investment.
Until mid-year, the realization of new investment financing reached Rp52.2 trillion from the target of around Rp203.1 trillion.
He also reminded that every debt withdrawal generates costs that must be borne by the government, especially when the cost of funding (cost of fund) is still high.
Therefore, Said said, the funds from financing that have not yet been immediately utilized have the potential to increase the fiscal burden in the future and need to be a concern in improving the APBN financing strategy.
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