Indonesia's COVID-19 Vaccination and Economic Resilience Strategy
Ample Liquidity in the Banking Industry and Economy Remains
.
this condition helps to boost credit/financing and continued economic recovery...
In November 2022, ratio of Liquid Assets to Third Party Fund remains high, standing at 30.42%, so that it supports availability of
funds for banks to extend credit/financing for businesses.
Economic liquidity is also in line with economic activities, as reflected from circulation of narrow money (M1) and broad money
(M2) which grows by 11.7% (yoy) and 9.5% (yoy), respectively.
The implementation of the Joint Decree between Bank Indonesia (BI) and Ministry of Finance, BI continues to purchase SBN in the
primary market to fund the national economic recovery and finance the health and humanitarian aspects of the Covid-19
pandemic. Until 21st December 2022, BI has purchased SBN of Rp144.53 trillion, consisting of the implementation of KB I of
Rp49.11 trillion and KB III of Rp95.42 trillion. According to KB III, BI will also remain purchasing SBN in the primary market of
Rp128.58 trillion.
Principles for Long Term Government Bond Purchasing by
Bank Indonesia in the Primary Market
SBN Purchases by Bank Indonesia for
State Budget Financing
Source: Bank Indonesia
Market
Mechanism
Prudent
Maintaining the Credibility of Monetary Policy
and Maintaining Economic Stability
Tradable &
Marketable
Tradable
SUN SBSN
Measured
Last Resort
Considering the
Impact on Inflation
standby buyer for
Non-Public Goods
GOVERN
Uphold Good Governance
SUSTAINABLE
Trillion IDR
400
358.32
2021
■2022*
350
300
250
200
144.53
150
100
50
0
Purchase of SBN for State Budget Funding &
Healthcare and Humanitarian Financing
Source: Bank Indonesia. * Data as of 21 December 2022
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