Sri Mulyani Reveals Reasons for State Money Parked at a Commercial Bank

Jakarta, IDN Times – Finance Minister Sri Mulyani revealed the reason for placing state money in commercial banks. The focus of the effort is to encourage national economic recovery (PEN) in the context of handling the COVID-19 pandemic.

He explained that the legal basis for placing funds in commercial banks is regulated in the Treasury Law Number 1 of 2004 and Perppu Number 1 of 2020 which is now Law Number 2 of 2020 and PP Number 39 of 2007.

“The Minister of Finance will place state money in commercial banks and for this stage state-owned banks. For this reason, the Minister has written to the Governor of BI (Perry Warjiyo) to use government funds that are indeed in BI for us to transfer to national commercial banks,” Sri Mulyani said in video conference at the Presidential Palace, Wednesday (6/24).

1. Placement of funds in commercial banks is expected to encourage the economy and the real sector

Illustration of Indonesian economy attacked by corona virus (IDN Times / Arief Rahmat)

The former Managing Director of the World Bank said that the placement of funds in commercial banks is expected to encourage the economy and the real sector to recover after several months of droop due to the impact of COVID-19.

“So this is so that banks immediately and continue to accelerate lending and various efforts to restore the real sector,” he said.

As for the placement of state money in commercial banks, there are two restrictions on the use of money. First, it is forbidden to buy state securities (SBN). Second, the state money that is placed may not be used for foreign exchange transactions or foreign exchange purchases.

“So this fund specifically promotes the economy of the real sector. In this context we will enter into cooperation agreements with CEOs of Himbara banks to be represented by the director general of treasury. Earlier the president asked the SOE minister to monitor the use of these funds in order to encourage the real sector,” he said .

Also Read: Sri Mulyani Parked Rp30 Trillion of State Money at Commercial Banks

2. Placement of state money in commercial banks with low interest rates

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Sri Mulyani Reveals Reasons for State Money Parked at a Commercial BankFinancial Illustration (IDN Times / Arief Rahmat)

Sri Mulyani added, the placement of these funds will use an interest rate mechanism of 80 percent from the 7 days repo rate of BI (7DDR) or the BI reference rate which is currently at 4.25 percent. The low interest rates are expected to encourage Himbara banks to channel loans more optimally to the real sector.

“Provided to entrepreneurs and with lower interest rates. We will continue to evaluate this step,” he said.

3. Utilization of state funds will be utilized by Himbara to a number of sectors

Sri Mulyani Reveals Reasons for State Money Parked at a Commercial BankBank BTN employees (left) explain to prospective borrowers (right) the use of the features and benefits of the BTN Property Apps application for online mortgage applications at the Bank BTN Semarang office, Central Java. IDN Times / Dhana Kencana

President Director of PT Bank Rakyat Indonesia (Persero) Sunarso explained that his party was focused on moving the real sector, especially MSMEs through lending. This ‘small’ bank is also committed to expanding beyond the target placement of funds.

“We have a plan in the three months we are expanding, say we can Rp. 10 trillion, then we must expand to Rp. 30 trillion. We are committed to achieving more than that. We have targets, markets, MSME segments and the selection sector for sectors that support the food sector both agriculture and relative support agriculture industry. Thus distribution is certainly a health facility. The biggest focus is on food, “Sunarso explained.

Meanwhile, Managing Director of PT Bank Mandiri (Persero) Royke Tumilar said it would focus on lending to sectors related to tourism. According to him, the distribution will encourage recovery of MSMEs.

Whereas for Bank BTN it will focus on the housing sector which indeed is core his business. Of the funds placed by the government, there will be an expansion of more than three times the amount to be placed in the company. As much as 40 percent of the funds placed by the government will be focused on subsidized KPR.

“We are given the trust to distribute approximately 146 thousand subsidized houses. And the total until the end of the year is around Rp. 18 trillion – Rp. 20 trillion,” Pahala said.

Also Read: State Injected with a Capital of Rp1.5 T so that the Debt Ratio Is Not Swollen

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