JAKARTA, Oct. 7 (Xinhua) -- Indonesia's Finance Ministry has withdrawn around 70 trillion Indonesian rupiahs (about 4.2 billion U.S. dollars) from the country's central bank, with plans to inject the funds into several regional development banks across the archipelago, Finance Minister Purbaya Yudhi Sadewa said on Tuesday.
The move follows the ministry's transfer in September of 200 trillion rupiahs (around 12 billion dollars) from its savings at the central bank to five state-owned banks. The initiative aims to strengthen banking liquidity, support lending to the real sector, and stimulate national economic growth.
Purbaya said that in total, about 270 trillion rupiahs have been withdrawn from the central bank so far. Of that amount, around 70 trillion rupiahs will be allocated to regional development banks, including Bank Jakarta, owned by the Jakarta government, and Bank Jatim, owned by the East Java provincial government.
According to the minister, the planned capital injections for each bank would range between 10 trillion rupiahs (about 600 million dollars) and 20 trillion rupiahs (1.2 billion dollars), depending on their capacity and performance.
He added that the selected banks were chosen because they have strong capital bases and receive solid support from their respective regional administrations. ■
