Government Measures to Mitigate Covid-19 Risk
Strengthened Monetary Expansion and Fiscal Synergy
PRINCIPLES OF FUNDING AND BURDEN SHARING
PRUDENT
Maintaining the credibility of Monetary Policy in the effort to
Maintain Economic Stability
Bl as the back-stop
for Non-public Goods
scheme
•
Commencing in 2020, Bank Indonesia has injected liquidity
through quantitative easing to the banking industry
totalling Rp750.38 trillion (4.86% of GDP), consisting of
Rp726.57 trillion in 2020 and Rp23.81 trillion in 2021 (as of
16th February 2021)
Synergy between monetary expansion and fiscal stimuli
has been strengthened through SBN purchases by Bank
Indonesia in the primary market
After making purchases in the primary market totalling
Rp473.42 trillion to fund the 2020 State Budget, Bank
Indonesia is continuing to purchase SBN in the primary
market in 2021 to help fund the 2021 State Budget through
mechanisms pursuant to the Joint Decree issued by the
Minister of Finance and Governor of Bank Indonesia on
16th April 2020, which was subsequently extended on 11th
December 2020 until 31st December 2021
As of 16th February 2021, Bank Indonesia has purchased
SBN worth Rp40.77 trillion in 2021 in the primary market,
including Rp18.16 trillion through private placement and
Rp22.61 trillion through greenshoe options (GSO)
MARKET
MECHANISM
TRADABLE &
MARKETABLE
MEASURED
LAST RESORT
SUN/SBSN tradable
maintaining inflation
in the target range
One-off Policy
in 2020
GOVERN
Prioritize good governance
SUSTAINABLE
Source: Bank Indonesia
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