State Treasury Fund Allocation Sparks Controversy

JAKARTA — The government’s placement of cash in state-owned banks to spur lending is seen as a breach of state budget management procedures outlined in the State Finance Law, the State Treasury Law, and the 2025 State Budget Law.

According to senior economist at the Institute for Development of Economics & Finance (INDEF) Didik J. Rachbini, the process of drafting, approving, and allocating the state budget is strictly governed under Article 23 of the 1945 Constitution, Law No. 17/2003 on State Finance, Law No. 1/2004 on State Treasury, and the annual State Budget Law.