June 24, 2020 / 7:52 AM / 8 days ago

Indonesia to place funds in state banks to support economy -fin min

JAKARTA, June 24 (Reuters) - Indonesia’s government will shift 30 trillion rupiah ($2.13 billion) held at its account at the central bank to four state banks and ask them to use funds to expand lending and support economic recovery, the country’s finance minister said on Wednesday.

Sri Mulyani Indrawati told a streamed news briefing the funds must be used in lending to the real sector of the economy and banks had been asked to apply an interest rate of just 80% of the central bank’s benchmark rate - which is now at 4.25%.

Banks that will receive the funds are Bank Rakyat Indonesia (BRI), Bank Mandiri, Bank Negara Indonesia (BNI) and Bank Tabungan Negara (BTN). Chief executives of the banks also attended the briefing.

BRI chief executive Sunarso said the government had asked for the banks to leverage the funds by 300% in three months.

$1 = 14,095.0000 rupiah Reporting by Gayatri Suroyo and Maikel Jefriando Editing by Ed Davies

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