Plan to Place Government Funds in Regional Banks to Increase Effectiveness of State Budget Distribution
Jakarta – The government, through the Ministry of Finance, plans to take a strategic step by shifting the placement of Surplus Budget Balance (SAL) funds from Bank Indonesia to Regional Development Banks (BPD). This step is intended to strengthen the distribution effectiveness of the State Budget (APBN) and simultaneously stimulate economic activity in the regions.
Finance Minister Purbaya Yudhi Sadewa stated that this policy is expected to accelerate the distribution of development funds, ensuring they are more targeted and aligned with needs on the ground.
“I’ll try two banks first, Bank Jakarta and Bank Jatim. I see strong backing, both of which are large, so I feel more secure. If the money is lost, I’ll simply cut the General Allocation Fund (DAU) and Special Allocation Fund (DAK),” he said.
Purbaya explained that placing government funds in regional banks is not merely to increase liquidity but is also directed to support development programs with specific objectives.
“Placing funds in BPDs will have a multiplier effect on the regional economy, accelerating the financing of strategic projects directly related to public services and infrastructure,” he said.
Bank Jakarta President Director Agus H. Widodo welcomed the Ministry of Finance’s move. He believes this plan reflects the government’s confidence in the ability and credibility of regional banks to manage public funds professionally and transparently.
“Bank Jakarta expresses its appreciation and welcomes the central government’s plan to allocate funds as conveyed by the Minister of Finance,” Agus said.
He further added that Bank Jakarta, formerly known as Bank DKI, is ready to support the government’s efforts to strengthen the stability of the regional financial system and accelerate economic growth in the capital and surrounding areas.
“Currently, Bank Jakarta’s liquidity position is at a healthy level, with a maintained Loan-to-Deposit Ratio (LDR),” he explained.
Meanwhile, Maybank Indonesia Global Markets Economist Myrdal Gunarto explained that many regional government funds have been languishing in Regional Development Banks (BPD) because development programs have not been running optimally, while regional governments tend to wait for returns on their deposits.
“This policy is a strategic and innovative step to boost economic activity in the regions,” he said.
Furthermore, Myrdal assessed that with faster cash flow in the regions, public production and consumption activities would increase, thus positively impacting national economic growth.
“So, the hope is that this can boost the real sector, especially by channeling credit to priority government development sectors,” he concluded.
