Inflation Control and Financial Facilities Strategy slide image

Inflation Control and Financial Facilities Strategy

Ample Lines of Defense Against External Shocks Ample Reserves FX Reserve Ample level of FX reserves to buffer against external shock FX Reserves as of of October 2020: US$133.7 bn Swap Arrangement Japan Bilateral Regional Global South Korea Australia Singapore China Malaysia ASEAN Swap Arrangement (ASA) Chiang Mai Initiative Multilateralization (CMIM) Agreement IMF Global Financial Safety Net - GSFN Source: Bank Indonesia Renewed a 3 year USD22.76 billion swap line with Japan on October 14th, 2018 The facility is available in USD and JPY • Renewed a 3 year KRW / IDR swap arrangement with the size of up to KRW 10.7 trillion IDR 115 trillion in March 2020 • Renewed a 3 year A$/IDR swap arrangement of up to A$10 billion or IDR 100 trillion in August 2018 • Renewed a one year SGD/IDR swap arrangement with a size up to USD10 billion (equivalent) in November 2020 Renewed a 3 year swap arrangement and increased the size of swap line up to CNY 200 bn / USD 30 billion in November 2018 Established a 3 year RM/IDR swap arrangement with a size up to USD2 billion (equivalent) in September 2019 Entitled to a maximum swap amount of USD600 million under ASA The first MoU on the ASA was signed in 1977 among 5 ASEAN Central Banks with total facility USD100 million Doubled to USD2 billion in 2005 Entitled to a maximum swap amount of US$ 22.76 bn under the ASEAN+3 (Japan, China, and Korea) FX reserves pool created under the agreement • Came into effect in 2010 with a pool of US$120 bn and • Doubled to US$240 bn effective July 2014 Indonesia is entitled to access IMF facilities for crisis prevention to address potential (actual) BOP problem • Such facilities include Flexible Credit Line (FCL) and Precautionary and Liquidity Line (PLL) 69
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