Akmalal Hamdhi, Jakarta – Finance Minister Purbaya Yudhi Sadewa firmly dismissed speculation that the government's excess budget balance (SAL) has dwindled to Rp 120 trillion stressing the reserve remains intact at Rp 420 trillion ($24.4 billion) and has not been tapped for spending.

The clarification follows circulating concerns over thinning state cash buffers. Purbaya explained that the decline in balances held at Bank Indonesia (BI) reflects a Rp 300 trillion fund transfer to commercial banks, without altering ownership status as government reserves.

What I did was move Rp 300 trillion from BI to commercial banks. That is still my money, like a deposit. Excess balance remains intact at Rp 420 trillion, Purbaya said at the Indonesia Stock Exchange building in Jakarta on Monday.

He said the move was aimed at optimizing fund placement while maintaining fiscal buffers. The funds are parked in on-call deposit instruments, allowing flexibility to withdraw them at any time if needed.

I simply moved it to banks like a deposit from BI. Not a single rupiah has been used for the budget. It remains in the form of SAL, he said, adding that the government has no immediate plan to utilize the reserve.

Purbaya also assured that the state budget (APBN) remains in a safe position, with SAL functioning as a final safeguard in Indonesia's fiscal management framework.

If I may put it, SAL is the second line of defense, or even the last layer in the multiple layers of protection we have, he said.

Last week, Purbaya signaled a more cautious fiscal stance, saying the government has entered a survival mode, leaving no room for policy missteps or inefficiencies, particularly in revenue collection.

Survival mode means we cannot afford to play around anymore. If tax collection is handled carelessly, it could be disastrous, he said at a media briefing in Jakarta on Friday.

Source: https://jakartaglobe.id/business/minister-rejects-claims-of-shrinking-indonesia-cash-buffe