2022 State Budget and Fiscal Incentives Presentation
Liquidity Remains Very Loose in Line with Accommodative Monetary Policy
Stance and the Impact of Synergy Between BI and the Government to Support
Economic Recovery
Principles for Long Term
Government Bond Purchasing by
Bank Indonesia in the Primary Market
Market
Mechanism
Prudent
Maintaining the Credibility of Monetary Policy
and Maintaining Economic Stability
Measured
Tradable &
Marketable
Tradable
SUN/SBSN
Considering the
Impact on Inflation
GOVERN
Uphold Good Governance
Source: Bank Indonesia
SUSTAINABLE
Last Resort
Bl as a
standby buyer for
Non-Public Goods
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•
•
Bank Indonesia has injected liquidity through quantitative
easing (QE) to the banking industry totalling Rp147.83 trillion
in 2021 and Rp5.93 trillion in 2022 (as of 18th January
2022)
Bank Indonesia in 2021 purchased SBN to fund the State
Revenue and Expenditure Budget (APBN) totalling Rp358.32
trillion, consisting of: (i) Rp143.32 trillion through the primary
market in accordance with the Joint Decree (KB) issued by
the Minister of Finance and Governor of Bank Indonesia,
which remains effective until 31st December 2022, and (ii)
private placement totalling Rp215 trillion to fund the health
and humanitarian budgets for Covid-19 pandemic handling in
accordance with the Joint Decree (KB) issued by the Minister
of Finance and Governor of Bank Indonesia on 23rd August
2021. In 2022 (as of 18th January 2022), Bank Indonesia has
purchased SBN in the primary market totalling Rp2.20 trillion
The expansive monetary policy stance supported loose
liquidity in the banking industry in December 2021, as
reflected by high ratio of liquid assets to deposits at 35.12%
and deposit growth of 12.21% (yoy). Liquidity in the
economy has also increased, as indicated by narrow (M1)
and broad (M2) money supply aggregates, which grew 17.9%
(yoy) and 13.9% (yoy) in the reporting period
Bank Indonesia will normalise liquidity policy in 2022, while
safeguarding the banking industry's ability to extend
financing to the corporate sector and buy SBN to fund the
State Revenue and Expenditure Budget (APBN)
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