Inflation Control and Financial Facilities Strategy
Strengthening Bank Indonesia's Policy Mix to Mitigate COVID-19
D
自
BGM:
Lower Bi
7-day
Reverse
Repo Rate
Stabilization
Of The
Rupiah
Money
Market And
Foreign
Exchange
Quantitative
Easing
Macro-
Prudential
Policy
Payment
System
Policy
Board of Governor Meeting
Source: Bank Indonesia
BGM 19-20 FEB,
2 MAR, AND 18-
19 MAR 2020
1. Lower BI7DRR by 25 bps
in February to 4,75%,
and other 25 bps in
March to 4,50%
reserve
2. Lower a 50bps of daily
rupiah
requirement (RR) for the
banks engaged in
export-import financing,
and expanding rupiah
RR cut for SME
3. Lower Foreign Exchange
Reserve Requirement
from 8% to 4%
4. Rupiah
(vostro)
accounts
of foreign
investors as underlying
of DNDF
5. Domestic
custodian
bank for global investors
6. Triple
intervention:
spot, DNDF, &
purchasing SBN in the
secondary market
7. Daily FX swap auction
and Repo auction of SBN
8. Liquidity
through
operation
injection
monetary
9. Relaxation of Macro-
prudential
Intermediation Ratio
10. QRIS campaign to SME,
traditional markets,
students and worship
places
11. Lower SKNBI cost
BGM 13-14 APRIL
AND 18-19 MAY
2020
1. Hold the BI 7-Day Reverse
Repo Rate at 4.50% for
external stability & stimulate
growth
2. Strengthening the intensity
of triple intervention policy
3. Providing liquidity for the
banking industry on
restructuring MSME loans
and ultra-micro with formal
loans
4. Lower the rupiah RR ratios
by 200bps for conventional
commercial banks and by
50bps for Islamic banks
5. Strengthening Monetary
operations and Islamic
financial market deepening
through FLisBI, PASBI and
SiPA
6. Relaxing the additional
demand deposit obligations
on the MIR
7. Raised the MLB by 200bps
for conventional commercial
banks and by 50bps for
Islamic banks
8. Increasing the non-cash
payment instruments
uptake
9. Strengthening policy mix
and coordination with the
Government & other
authorities
10.Accelerating
implementation of digital
economy & finance
BGM 17-18 JUNE
2020 AND 15-16
JULY 2020
1. Lower BI7DRR to 4,00%, 25 bps
in June and 25 bps in July
2. Maintaining Rupiah exchange
rate stabilization policy in line
with
the
currency's
fundamental value and market
mechanisms
3. Providing reserve requirement
remuneration of 1.5% per year
for banks meeting daily and
average rupiah reserve
requirements
4. Strengthening a synergized
expansive monetary policy
response with accelerated
fiscal stimuli from the
Government:
✓ firmly committed to funding
the APBN 2020 through SBN
purchases in the primary
market to finance the
budgets for healthcare,
social protections, sectoral
government ministries and
agencies & local government
✓ Burden sharing with the
Government to accelerate
MSME and corporate sector
recoveries
5. Expediting payment system
digitalization to hasten the
digital economy and finance
implementation as part of the
economic recovery efforts
BGM 18-19 AUGUST 2020
BGM 16-17 SEPTEMBER 2020
1. Hold BI7DRR at 4,00%
2.
Focusing on the quantity channel by providing liquidity to
stimulate economic recovery, including supporting
Government in accelerating 2020 state budget realization
3. Maintaining rupiah stabilization policy in line with fundamental
value & market mechanisms
4. Strengthening MO strategy in order to accelerate monetary
policy transmission
5. Accelerating money market and foreign exchange market
deepening through infrastructure development, including ETP
& CCP
6. Lowering the minimum limit of DP on green automotive
loans/financing from 5-10% to 0%, in compliance with
prudential principles
7. Extending the 50bps lower on rupiah reserve requirements, as
an incentive for banks disbursing loans to SMEs and for export-
import activity and to non-SMEs operating in priority sectors as
stipulated in the PEN, from 31 Dec' 20 previously until 30
Jun'21;
8. Accelerating development of money market instruments to
support corporate and SME financing in line with the national
economic recovery program (PEN)
9. Strengthening synergy with the banking industry, FinTech,
Government and relevant authorities to accelerate
digitalization, amongst others, by supporting SME digitalization
and the Made in Indonesia National Movement (GERNAS BBI),
and promoting the use of QRIS for e-commerce
10. Expanding QRIS acceptance to bolster economic recovery and
accelerate SME by extending 0% MDR for micro-businesses
from 30 Sept 20 previously until 31 Dec'20
11. Strengthening policy implementation to stimulate SMEs
through corporatization, increasing capacity, access to finance
as well as digitalization in line with Gernas BBI
12. Strengthening the digital economy & finance ecosystem
through the use of digital payment instruments & collaboration
between the banking industry, FinTech & e-commerce to
support PEN
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