Investor Presentaiton
Loose Liquidity Persist, In Line with
Strengthened Synergy Between Monetary and Fiscal Policy
PRINCIPLES OF FUNDING AND BURDEN SHARING
PRUDENT
Maintaining the credibility of Monetary Policy in the effort to
Maintain Economic Stability
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
Bl as the back-stop
for Non-public Goods
scheme
Beginning in 2020, Bank Indonesia has injected liquidity
through quantitative easing to the banking industry
totalling Rp798.85 trillion (5.18% of GDP), consisting of
Rp726.57 trillion in 2020 and Rp72.27 trillion in 2021 (as of
16th April 2021)
Synergy between monetary expansion and fiscal stimuli
has been strengthened through SBN purchases by Bank
Indonesia in the primary market:
ā 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 April 2021, Bank Indonesia has purchased
SBN worth Rp101.91 trillion in 2021 in the primary
market, including Rp28.33 trillion through primary
auction and Rp73.58 trillion through greenshoe
options (GSO)
Source: Bank Indonesia
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