Jakarta, Sept. 12 -- Bank Mandiri on Friday welcomed the government's decision to place 200 trillion rupiah (USD12 billion) in state-run banks, saying the move would stabilize the financial system and strengthen credit flows.

The policy is aimed at channeling more loans to productive sectors in line with government priorities and President Prabowo Subianto's eight-point Astacita plan for sustainable growth.

Bank Mandiri Corporate Secretary M. Ashidiq Iswara said the funds could help grow third-party deposits while encouraging stronger lending.

"According to Bank Mandiri's economic team, it will support healthier liquidity conditions and improve monetary policy transmission, allowing for more optimal money circulation in the economy," I...