Five days after his inauguration, Indonesia’s new Minister of Finance, Purbaya Yudhi Sadewa, unveiled a program to allocate IDR 200 trillion of state funds across five partner commercial banks. The policy was stipulated in Minister of Finance Decree (KMK) No. 276 of 2025 and took effect on Friday (Sep. 12).
The funds were distributed to Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Bank Mandiri, Bank Tabungan Negara (BTN), and Bank Syariah Indonesia (BSI).
UGM economist Dr. Wisnu Setiadi Nugroho, a lecturer at the Faculty of Economics and Business (FEB UGM), assessed that the IDR 200 trillion transfer is reasonable, considering the existence of idle state funds at Bank Indonesia (BI) due to slow budget absorption.
By placing the funds in banks, he explained, they could increase their lending capacity, improve liquidity ratios, and ease short-term funding constraints, thereby reducing temporary liquidity pressures.
“In addition, reports from the Financial Services Authority (OJK) indicate that the loan-to-deposit ratio (LDR) still provides room, allowing additional liquidity to be absorbed,” he said on Friday (Sep. 26).
However, Dr. Nugroho underlined that liquidity injections have clear limitations. The multiplier effect on the real sector will only materialize if there is viable credit demand and banks are willing to lower their lending standards for productive purposes.
If banks remain cautious or demand remains weak, he noted, the funds could be “parked” in safe instruments or used to purchase liquid assets, limiting their impact on employment absorption.
Moreover, if government funds or instruments are directed toward supporting high-risk loan programs with full state guarantees, Dr. Nugroho warned of the potential emergence of large contingent liabilities for the state budget (APBN).
Therefore, he emphasized the importance of adhering to general principles of fiscal management, including risk quantification, guarantee ceilings, accurate risk pricing (premiums), and transparent reporting.
“I think this is crucial to avoid unexpected cash obligations, as emphasized in international guidelines such as those from the IMF,” he added.
Beyond the IDR 200 trillion program, Minister Sadewa also launched the 2025 economic acceleration package, one of which includes an internship program for university graduates.
Dr. Nugroho noted that the program provides a stipend equivalent to the Provincial Minimum Wage (UMP) for six months during its initial phase, targeting 20,000 participants.
Assessing the program’s scale and challenges, he referred to official data from the Ministry of Manpower, which showed that around one million university graduates remained unemployed in 2025.
Compared to this figure, the 20,000 participants represent only a small fraction, meaning the aggregate impact on educated unemployment will be limited.
“It will remain very limited unless the program is scaled up or integrated with sustainable job placement,” he continued.
In addition to education-related initiatives, Dr. Nugroho outlined several conditions for the effectiveness of other economic packages.
First, programs should focus on real work experience and market-relevant skills.
Second, they should encourage permanent job conversions through employer incentives, such as conditional tax relief.
Third, a matching system for job placement and vocational technical training is essential.
“We must also not forget to enhance both scale and quality, not merely provide short-term wage subsidies,” he emphasized.
He further added that development priorities should target sectors capable of absorbing large workforces while generating sustainable added value.
According to Dr. Nugroho, the initial steps should include strengthening human capital through vocational training, structured internships, and curriculum reforms that are aligned with industry needs.
He also identified competitive labor-intensive manufacturing, value chain integration, digitalization, and access to finance for MSMEs, and infrastructure and logistics efficiency as key drivers of national competitiveness.
“Equally important, the agriculture and marine sectors must also be developed to maintain food stability while creating jobs in rural areas,” he said.
Author: Hanifah
Editor: Gusti Grehenson
Post-editor: Rajendra Arya
Illustration: Freepik