During a hearing with the finance commission of the House of Representatives on Sept. 10, Purbaya said he had reported the plan to President Prabowo Subianto.

This is not a routine cash management update. The money will be derived from the government’s surplus budget balance from previous fiscal years (SAL), which has long served as a fiscal buffer.

The policy raises a fundamental policy question as to how the government should balance SAL’s role as an instantly available liquidity reserve with its potential role in supporting the national banking system. Latest official data showed that SAL funds parked at Bank Indonesia (BI) totaled Rp 457 trillion as of last year.

SAL is supposed to represent the excess of realized revenues over expenditures from prior fiscal years. It plays a critical role in Indonesia’s fiscal framework, acting as a backstop for deficits, urgent spending and cash reserves.

In practice, SAL has become a vital fiscal cushion, enabling the government to maintain operations even when revenues lag. This role is particularly important at the start of each fiscal year, when tax receipts typically arrive later. SAL effectively acts as bridging finance, ensuring that programs and obligations go undisrupted. Without it, fiscal execution could decrease, creating uncertainty and economic spillovers.

Historically, SAL has been parked at BI for good reason. The central bank provides unmatched safety, given its role as the monetary authority with near-zero risk compared with commercial banks. It also offers instant liquidity, allowing the government to access funds without bureaucratic or contractual delays.