Indonesia to Place $22 Billion in State Banks as Liquidity Tightens
Updated
Updated · Bloomberg · Jun 26
Indonesia to Place $22 Billion in State Banks as Liquidity Tightens
2 articles · Updated · Bloomberg · Jun 26
Summary
400 trillion rupiah ($22 billion) of Indonesian government standby funds will be placed in state-owned lenders, Finance Minister Purbaya Yudhi Sadewa said in Jakarta on Friday.
The move is aimed at sustaining economic growth after an earlier reduction in those placements several weeks ago tightened liquidity in the banking system.
Indonesia currently keeps about 200 trillion rupiah in long-term placements at state banks, meaning the new level would roughly double the funds parked there.
The decision underscores Jakarta's use of state banks as a policy channel to support credit conditions and broader economic activity.