"SAL is the country`s fiscal strength reserve in the face of unexpected turmoils in the securities market rmoil and a sudden reversal in the capital inflow," the minister said at the Parliament building on Thursday night.
He said the SAL would become one of the pillars of the crisis management protocol which had been agreed on among the finance ministry, Bank Indonesia (BI/the central bank) and the Deposit Insurance Agency (LPS).
The use of SAL will support the use of Bond Stabilization funds for the buyback of government`s securities and the utilization of the state`s foreign exchange reserves which had now reached US$116 billion.
It will also be useful for increasing the role of state-owned insurance firms and banks in order to provide protection for state debentures and the utilization of state revenue surpluses.
Besides, the finance minister also proposed to the House Budgetary Agency that the SAL amounting to Rp97 trillion be also used as alternative financing in the revised 2011 state budget.
(Uu.A014/HAJM/F001)
Editor: Priyambodo RH
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