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Indonesia moves $12.23B to state banks to boost lending and growth.
Indonesia has transferred $12.23 billion in unspent government funds from its central bank to five state-owned banks to boost liquidity and stimulate lending to the real economy.
The move aims to counter slowing credit growth, especially for small businesses, and accelerate economic activity.
Finance Minister Purbaya Yudhi Sadewa said the injection will improve financing access for households and businesses.
The funds, not emergency reserves, are expected to strengthen financial stability and support job creation.
Meanwhile, parliament is reviewing changes to the central bank’s mandate, potentially expanding its role in growth and allowing parliamentary input on the governor’s removal.
Critics warn the policy may fuel inflation and create speculative risks without addressing deeper structural issues.
Indonesia traslada $12.23B a los bancos estatales para impulsar los préstamos y el crecimiento.