The government places funds in banks that offer a multiplier effect on loans
Jakarta (ANTARA) – Banks have lent 458.22 trillion rupees to 5.49 million debtors using public funds as of December 17, 2021, Finance Minister Sri Mulyani Indrawati has informed.
“The government places funds in banks that provide a multiplier effect on lending,” she said at the KSSK press conference on Wednesday.
The support of the Financial System Stability Committee (KSSK) to the banking sector is part of the package of measures to encourage economic recovery through banking intermediation, she explained.
The Ministry of Finance, Bank Indonesia, Financial Services Authority (OJK) and Indonesian Deposit Insurance Corporation (LPS), in accordance with their respective authorities, have implemented policies to ensure trust banks in the granting of credits or financing, declared the minister.
Related news item: The Regions invited to anticipate the challenges of budgetary management
The KSSK also supports liquidity in the banking sector, sustains banking performance and maintains public confidence in the banking sector, she added.
The placement of public funds in banks aims to support banking performance as well as encourage intermediation, Indrawati said.
“The more normal the level of intermediation in the financial sector, especially banking, is, the faster the economic recovery will be,” she explained.
The government has been implementing its fund placement program in banks since 2020 as part of reviving the national economy.
This program aims to encourage banks to channel credit, particularly to the real sector.
Related News: Car loans hit 97.45 trillion rupees in 2021: Minister
In the budget of Rp 744.77 trillion for the National Economic Recovery Program (PEN) in 2021, the placement of funds in banks has been included as support for MSMEs (micro, small and medium enterprises) and enterprises , with Rp 171.77 trillion allocated for this purpose, Indrawati said.
The budget for the National Economic Stimulus Program (PEN) has been increased to 455.62 trillion rupees, or about $31.7 billion, for 2022, she informed earlier.
“This indicates that PEN has been included in the 2022 state budget,” she said during a meeting with House of Representatives Committee XI (DPR RI) here on Wednesday.
According to Indrawati, the budget was split between three sectors: health (122.5 trillion rupees), social welfare (154.8 trillion rupees) and economic recovery consolidation (178.3 trillion rupees).
Related News: G20 member finance and health ministries step up cooperation at JFHTF
The health budget will focus on supplying vaccines and treating coronavirus patients, which still generate huge hospital bills, she said.
Moreover, due to the emergence of the Delta variant of COVID-19, the expenditure budget for patient care has reached Rs 94 trillion in 2021, and there are still Rs 23 trillion of bills to be paid. in 2022, informed the Minister.
“The health sector, especially in the treatment (of patients), is under budget because once there is an increase in COVID-19 (cases), its realization (budget expenditure) will be higher,” said she explained.
Vaccine stocks are relatively available and the realization of the budget for vaccine procurement will be lower because Indonesia has secured many subsidies for COVID-19 vaccines, she pointed out.
Related News: President inaugurates seven ports and four boats in Lake Toba region
Related News: President travels to Parapat Beach, Lake Toba on motorbike for review