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View all search resultsPurbaya denies banks' call to extend liquidity injection
The finance minister has rejected state-owned banks' call to extend the liquidity injection scheme, citing a need for flexibility while noting that the central bank would step in if necessary to maintain a stable money supply.
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Finance Minister Purbaya Yudhi Sadewa looks on during an interview with Reuters in Jakarta on March 3, 2026. (Reuters/Willy Kurniawan)
F
inance Minister Purbaya Yudhi Sadewa has turned down a call by state-owned banks to extend the maturity period of the government’s fund placement scheme to one year, noting the need for fiscal flexibility and that the current scheme had helped banks maintain ample liquidity.
He also expressed concern that extending the scheme could disrupt the government’s readiness to prepare emergency funds.
“So, there is Rp 200 trillion [US$11.06 billion] that [will remain in place] until the end of the year,” the minister told reporters on Tuesday at the Senayan Legislative Complex in Central Jakarta, as quoted by Antara.
“As for the Rp 100 trillion, it will be reviewed every three months, and the other Rp 100 trillion can move in and out flexibly because we need to anticipate if [the government] needs the fund,” he said.
Purbaya stressed that the current scheme was designed to provide the government with flexible access to the funds.
“BI [Bank Indonesia] will also gradually step in. If we withdraw the funds, BI will inject liquidity. That way, the money supply in the system will be more stable than before,” he added.
Read also: Purbaya pulls $4.8b liquidity injection from banks to fuel govt spending
