BSI Warns of Market Volatility from Sudden Withdrawal of Government Funds

Bank Syariah Indonesia (BSI) has voiced concerns that abrupt withdrawals of government budget surplus funds, known as SAL, could trigger market volatility. Anggoro Eko Cahyo, BSI's President Director, stated that sudden fund removals would disrupt market stability. BSI anticipates receiving Rp 21 trillion in SAL funds, contributing to a total allocation of Rp 400 trillion distributed among state-owned banks. Cahyo expressed a preference for the allocated amounts to be maintained to preserve market rhythm, rather than seeking immediate increases.

The issue of liquidity is paramount for the banking sector, according to Cahyo. He explained that prior to the SAL injections, banks actively sought liquidity to support expansion efforts. However, he urged the government to implement any necessary withdrawals gradually to allow banks to manage their liquidity effectively. This statement comes as the government, through Deputy Finance Minister Juda Agung, confirmed the reallocation of SAL funds to several banks within the Himpunan Bank Milik Negara (Himbara) group.

Agung also announced that the government is extending the placement of funds previously set to mature in September 2026 until the end of December 2026. A total of Rp 281 trillion will be returned and extended. Furthermore, an additional Rp 100 trillion is being held in reserve, available if the banking sector requires further liquidity to facilitate lending. This measure is in response to banking sector reports indicating sustained high credit demand. Government data shows banking credit grew 11.5% in May 2026, and the government expects this double-digit growth to continue.