Indonesia to Divert $4.5 Billion From State-Bank Placements

Indonesia will pull back 75 trillion rupiah ($4.49 billion) of government cash it had planned to park in state-owned banks, citing the initiative’s limited impact on boosting lending in Southeast Asia’s largest economy.

The finance ministry will reallocate the funds for central government spending and transfers to regional administrations, Finance Minister Purbaya Yudhi Sadewa said on the sidelines of a market reopening event in Jakarta on Friday.