Government's Strategic Financial Injection to Stimulate Credit Growth

Minister Purbaya Explains Impact of Rp200 Trillion Fund Placement

Finance Minister Purbaya Yudhi Sadewa addressed the impact of the government's decision to place Rp200 trillion in state-owned banks for credit financing. The minister emphasized that the effects of this financial injection are not immediate. Purbaya drew parallels with previous experiences in 2020 and 2021 when similar financial injections were made, resulting in significant credit growth despite initial undisbursed loan positions.

Historical Context and Future Projections

During the 2020-2021 period, the government injected liquidity into the banking system, which subsequently led to double-digit credit growth. Purbaya highlighted that despite the presence of undisbursed loans at the time, credit growth remained robust. The minister's statement suggests that a similar positive outcome is anticipated from the current Rp200 trillion injection.

Addressing Credit Demand and Supply

Purbaya pointed out that there is always demand for credit from businesses. However, he noted that sometimes banks are hesitant to lend because they find other investment options more lucrative. This observation underscores the importance of the government's intervention to ensure that credit is channeled to productive sectors of the economy. The minister's confidence in the potential of the current injection to stimulate credit growth is based on past experiences and the ongoing demand for credit.