Finance Commission XI of the House of the Representatives (DPR) has emphasized that the government’s plan to withdraw Rp200 trillion (US$12.9 billion) in idle funds from the Indonesian Central Bank (BI) must be implemented productively and with precise targeting to support the real economy.

“We understand the government’s intention to mobilize idle funds, but the key to success lies in targeted distribution,” Chairman of Commission XI, Mukhamad Misbakhun said in a statement on Friday, September 12, 2025.

He warned that the initiative must not merely increase liquidity in the financial system, only to be reabsorbed into BI’s monetary instruments. Instead, it should be directed toward supporting sectors that can generate tangible economic impact.

To achieve this, Misbakhun called for stronger coordination between the Finance Ministry and the Central Bank to align fiscal and monetary goals, particularly in maintaining inflation and exchange rate stability, while ensuring that credit reaches the real sector.

The Commission, which oversees fiscal and financial matters, has identified three key areas of concern regarding the plan.

First, targeting. Misbakhun said that fund placements should not be limited to state-owned banks (Himbara), but also include private and national commercial banks, especially those committed to financing labor-intensive sectors.

Second, monitoring. The realization of credit distribution must be tracked to ensure it is not stalled within bank balance sheets, he said.

Third, supporting policies. The initiative would be more effective, Misbakhun argued, if accompanied by complementary stimulus measures such as labor-intensive programs, tax incentives, and housing support.

“With a combination of reinforcing policies, the multiplier effect can be maximized. This is how the fund withdrawal can deliver real impact to the people,” he said.

Misbakhun also reiterated that House’s Commission XI will continue to oversee the government’s economic strategies.

“Our objective is clear: to safeguard financial stability, promote inclusive growth, and create more job opportunities for Indonesians,” he said.

Earlier this week, Finance Minister Purbaya Yudhi Sadewa announced that President Prabowo Subianto had approved his proposal to withdraw Rp200 trillion (US$12.9 billion) out of Rp425 trillion (US$27.4 billion) in government deposits at BI, with the aim of injecting the funds into the banking sector.

“The President has approved it,” Purbaya told reporters on Wednesday, September 10, following a meeting with Prabowo at the State Palace.

He cited that the funds would be allocated to banks to boost their lending capacity to the public.

“The idea is to ensure that banks are suddenly flush with cash, and they have no option but to lend it out. This is how we push the market mechanism to function,” Purbaya said.