March 27, 2026 | 10:11 am
TEMPO.CO Jakarta - Executive Director of the Center of Economics and Law Studies (Celios), Bhima Yudhistira, believes that the government could divert the surplus budget balance (SAL) as reserve funds to avoid widening the State Budget deficit in 2026. "Especially for energy subsidies," said Bhima, as quoted by Antara on Friday, March 27, 2026.
If oil prices remain at US$90 to US$110 per barrel, Bhima said the State Budget would require about Rp126 trillion to patch up energy subsidies. "The government could take from SAL, rather than performing essential budget cuts," he said.
Meanwhile, according to Bhima, injecting Rp100 trillion of SAL funds to the banking sector has yet to address the precise root of the problem. He believes that the issue with credit lies in low demand, rather than banking liquidity.
As of January 2026, the banking sector's undisbursed loans still amount to Rp2,506.47 trillion or 22.65 percent of the available credit ceiling. In other words, he said, the number of idle credits remains high.
Meanwhile, the growth of micro, small, and medium-sized enterprises (MSMEs) loans in the same period is depressed by 0.5 percent. Home Ownership loans (KPR) and Apartment Ownership Loans (KPA) also grew below the general credit growth of around 5.5 percent.
"There is concern that the additional injection of SAL funds will worsen the number of idle credits in Himbara banks. Meanwhile, if forced to enter programs such as credit for the Red and White Village Cooperative (KDMP) or free nutritious meal (MBG) program, it could lead to a decline in credit quality," he said.
Finance Minister Purbaya Yudhi Sadewa previously stated that an additional Rp100 trillion of SAL funds have been channelled into the banking sector. This fund allocation was made a week before Eid to ensure liquidity remains intact amidst potential increases in fund needs. With this addition, the total surplus budget balance placed in the banking sector has reached around Rp300 trillion.
Read: Celios Forecasts 5.05% Growth Fueled by Ramadan-Eid Spending
Click here to get the latest news updates from Tempo on Google News
Indonesia Assures No Subsidized Fuel Price Hike as Oil Tops US$100
7 hari lalu
Minister of Finance Purbaya addresses the subsidized fuel price as global oil prices surge to US$ 100 per barrel.
How Indonesian Gov't Keeps Budget Deficit Below 3%
7 hari lalu
The Indonesian government is implementing several measures to keep state budget deficit below 3% amidst rising global prices.
Prabowo Opens Door to Wider Deficit if Oil Prices Surge
10 hari lalu
Indonesian President Prabowo Subianto stated that the option to temporarily relax the state budget deficit or APBN limit is possible.
What Are the Risks of a Widening State Budget Deficit?
10 hari lalu
The plan to increase the deficit could lead to higher debt financing costs and a downgrade in ratings from global agencies.
How a Broader US-Iran War Could Strain Indonesia's State Budget
22 hari lalu
Coordinating Ministry for Economic Affairs said even a modest increase in oil prices would significantly strain the state budget.
Indonesia's State Budget Strong Enough to Withstand Global Crisis, Says Minister
23 hari lalu
Indonesian Finance Minister Purbaya Yudhi Sadewa confirmed that the State Budget remains strong enough to weather a potential global crisis.
Iran War Risks Widening Indonesia State Budget Deficit, Indef Warns
24 hari lalu
Indonesia assumes crude oil prices in 2026 to be US$70 per barrel. Now, war in Iran risks the surge of oil prices due to disrupted Strait of Hormuz.
Indonesia's Budget at Risk from US-Israeli Aggression Against Iran
25 hari lalu
The US-Israel conflict with Iran and the closure of the Strait of Hormuz trigger a global oil price surge, threatening Indonesia's 2026 State Budget.
PDIP: 2026 Free Meal Budget Sourced from Education Post
29 hari lalu
PDIP reveals that the Rp223.5 trillion Free Nutritious Meal (MBG) budget is officially listed within the 2026 education allocation.
Indonesia Logs Rp127.3 Trillion New Debt in January 2026
31 hari lalu
The Deputy Minister of Finance stated that a large portion of this debt financing is supported by funding from the State Securities (SBN) market.
