Jakarta, June 26 -- Finance Minister Purbaya Yudhi Sadewa announced a massive capital injection of up to Rp400 trillion (US$22.38 billion) into the Association of State-Owned Banks (Himbara) to strengthen banking liquidity and sustain national economic growth.

The funding will be drawn from the government's Excess Budget Balance (SAL) remaining at Bank Indonesia (BI), which was recently recorded at Rp590 trillion (US$32.98 billion).

According to Purbaya, the decision was made in direct response to numerous complaints from state-owned bank directors regarding tightening liquidity conditions.

"There is already a liquidity shortage there. I told them I would return government funds to Himbara. I will even increase it... so there will be s...