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

JAKARTA, KOMPAS.com – Indonesia’s Financial Services Authority or OJK said it will monitor the allocation of fresh funds for four state-owned banks.

On June 24, Indonesia’s Ministry of Finance announced that it will disburse Rp 30 trillion for four of the country’s state-owned banks - Bank BNI, Bank BRI, Bank Mandiri, and Bank Tabungan Negara.

At the time, Minister of State-Owned Enterprises Erick Thohir said the fund allotment is proof of the government’s trust in state-owned enterprises.

Read also: Erick Thohir: Coronavirus Pandemic Pushing Indonesia to Go Digital

One-third of the national economy is driven by Indonesia’s state-owned enterprises including state-owned banks.

Erick further explained how the fresh funds will be prioritized for Indonesian SMEs in villages and cities to get back on their feet.

Read also: Luhut Panjaitan: Indonesian SMEs are the Backbone of Indonesia’s National Economy

Erick said the Rp 30 trillion is hoped to revive the national economy after it was severely impacted by the coronavirus pandemic.

“We will ask the banks for the details of the Rp 30 trillion and how it was disbursed. We will ask for specific details such as the sector or cluster if it is an SME. We will specifically monitor this,” said Chairman of OJK’s Board of Commissioner Wimboh Santoso during a meeting on June 29.

Despite the large sum, Wimboh has asked that the four banks be cautious in determining which sectors will receive credit.

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

Read also: Indonesian Government Eyes Economic Rebound in 2023

“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

https://money.kompas.com/read/2020/06/24/184000126/4-bank-bumn-dapat-rp-30-triliun-ini-tanggapan-erick-thohir