Investor Presentaiton
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
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
Through its commitment to the 2020 State Budget, Bank
Indonesia in 2020 purchased SBN for funding and
burden sharing in the 2020 State Budget and to support
the national economic recovery program totaling
Rp473.42 trillion, consisting of Rp75.86 trillion and
Rp397.56 trillion in accordance with the Joint Decrees of
the Minister of Finance and Governor of Bank Indonesia
issued on 16th April and 7th July 2020 respectively.
Bank Indonesia has also realised burden sharing with the
Government to fund non-public goods-SME totaling
Rp114.81 trillion and non-public goods-corporate
totaling Rp62.22 trillion pursuant to the Joint Decree of
the Minister of Finance and Governor of Bank Indonesia
issued on 7th July 2020.
In 2021, Bank Indonesia will continue to purchase SBN in
the primary market to fund the 2021 State Budget
through mechanisms pursuant to the Joint Decree of the
Minister of Finance and Governor of Bank Indonesia
issued on 16th April 2020, which was extended on 11th
December 2020 until 31st December 2021.
In total, as of 19th January 2021, Bank Indonesia has
purchased SBN in the primary market totalling Rp13.66
trillion, including Rp9.18 trillion through auction schemes
and Rp4.48 trillion through greenshoe options (GSO).
Source: Bank Indonesia
(as of 19 January 2021)
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