JAKARTA (Reuters) -Indonesia’s Finance Minister Purbaya Yudhi Sadewa on Friday said that the 200 trillion rupiah ($12.2 billion) given to state-controlled banks must be used for lending, and not to buy bonds, as he sought to improve what he has called a “dry” banking system.

The liqudity measure is the minister’s first major move since he took office on Monday to boost annual economic growth, which has hovered at around 5% since after the pandemic. He has said a 6% to 7% growth is achievable for Southeast Asia’s largest economy, and described President Prabowo’s 8% target “not impossible”.

Purbaya is moving some of the cash the government keeps at the central bank to commercial banks in a bid to spur credit expansion.

“The goal (of this measure) is to ensure it flows to the real sectors

See Full Page