Financial Services Authority to Keep Tabs of Rp 30 Trillion Allocated to State Banks

Wimboh reminded that extending credit needs to be given to the right sectors in order for the workers to return to work and grow.

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“What we see is that the real sector is very enthusiastic. The streets are packed which is a good sign that the economy is growing again. But because the number of Covid-19 patients is increasing, we have to be careful,” said Wimboh.

Thus far, the capital and liquidity of the banking sector are at a stable and safe position.

This is in spite of soaring non-performing loans in May 2020 which indicated some sectors being affected by the coronavirus pandemic.

Why Rp 30 trillion

The placement of Rp 30 trillion to the state-owned banks is regulated by Finance of Ministry Law Number 70/PMK.05/2020 regarding Place of State Money in Banks to Accelerate the Recovery of the National Economy.

Indonesia’s Finance Minister Sri Mulyani hopes that the fresh funds will be distributed to creditors that can help restore the economy in the real sector.

“There is a rule in that the money cannot be used for foreign currency transactions or foreign currency purchases. The fund is specifically to revitalize the economy of the real sector,” said Sri Mulyani. 

(Writer: Fika Nurul Ulya, Akhdi Martin Pratama | Editor: Sakina Rakhma Diah Setiawan) 

Source: https://money.kompas.com/read/2020/06/29/143441726/ojk-akan-monitor-dana-pemerintah-rp-30-triliun-di-bank-bumn

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