Regulations
Experts noted that the risk of banks getting too reliant on the funds “is real” and a dependency cycle might materialize as banks grow accustomed to the idea that the funds are a “permanent source of liquidity”.
Finance Minister Purbaya Yudhi Sadewa delivers the government's final statement on behalf of President Prabowo Subianto on June 4 during a plenary session on amendments to the 2023 Financial Sector Development and Strengthening (P2SK) Law at the Senayan Legislative Complex in Central Jakarta. (Antara/Rivan Awal Lingga)
Members of House of Representatives’ Commission XI overseeing financial affairs have butted heads with Finance Minister Purbaya Yudhi Sadewa over the policy of excess cash (SAL) deposit in state-owned banks that the latter said functions as a liquidity injection to jumpstart the economy.The commission’s deputy head Dolfie Othniel Fredric Palit, a seasoned lawmaker from the Indonesian Democratic Party of Struggle (PDI-P), stressed in a hearing with Purbaya on Wednesday that the maneuver required approval from the House, in accordance with the 2026 State Budget Law.
Purbaya rebuked on the basis that “it’s just cash management” but responded with “I’ll study it back” when Dolfie pressed ahead and insisted that such a move had to be discussed in an official meeting with the House first.
