Indonesia strengthens food reserves and cash management to drive growth

Indonesia’s Institute for Development of Economics and Finance warned that the government must boost overall food reserves to cope with the upcoming El Niño‑related dry season. M. Rizal Taufikurahman said, “From the reserves side, the government should not feel safe just because rice stocks are relatively strong,” and called for mapping vulnerable production areas, accelerating irrigation upgrades and ensuring minimum stock levels of strategic commodities such as corn, sugar, soy, onions, eggs, chicken and beef.

Finance Minister Purbaya Yudhi Sadewa outlined a new cash‑management strategy aimed at mobilising the private sector, which generates about 90 % of Indonesia’s economic activity. He noted, “Cash management can affect Indonesia’s economy significantly. It can revive the 90 % economy beyond direct spending,” and explained that the state has transferred roughly Rp 400 trillion to commercial banks to strengthen liquidity and expand credit to businesses. A related issue raised by the financial press is the need to clarify the withdrawal scheme for the government’s “Saldo Anggaran Lebih” (SAL) funds to avoid funding‑mismatch risks.