Bank Indonesia Policy Mix
Strengthened Synergy Between Monetary and Fiscal Policy
Policy Synergy Between Bank Indonesia and the Government Contributes to the
Acceleration of Economic Recovery
The Enactment of Emergency Law No.1/ 2020 (Becoming Law No.2 / 2020) Allows BI to Buy GS in the Primary Market
1st Joint Decree between Minister of Finance and Governor
of Bank Indonesia (BI) on April 16, 2020 (SKB I). The role of
Bl is to act as backstop buyer in the primary market
2nd Joint Decree between Minister of Finance and Governor of BI on
July 7, 2020 amended with Joint Decree on July 20, 2020 (SKB II) puts
in place the burden sharing scheme between Government and Bl
3rd Joint Decree Between Minister of Finance and Governor of BI on August 23, 2021 (SKB III)
The Third Joint Decree concerns the scheme and coordination between the Government and Bank Indonesia in
the context of financing healthcare and humanitarian handling as a response to the current condition of the
COVID-19 pandemic
GOVERNMENT SECURITIES (SBN) ISSUANCE AND BI CONTRIBUTION SCHEME
Bl contributes all interest
costs on the financing for
vaccination and healthcare
with a maximum amount of
IDR58T (2021) and IDR40T
(2022), taking into account
Bl's balance sheet capacity
and capability
Cluster A
Cluster A :
2021 IDR58 T
2022 IDR40 T
Healthcare includes
vaccination program
and other healthcare
financing related to
COVID-19 pandemic
•
Interest rate BI 3M-RR
Covered by
Healthcare related to
COVID-19 pandemic
other than Cluster A
Humanitarian handling
in the form of various
protection programs for
affected communities/
small businesses
BANK INDONESIA
Interest rate BI 3M-RR
Covered by
GOVERNMENT
•
Issuance specifically
to Bl through
private placement
which will reduce
SBN auction
targetand manage
cost of debt
All SBN issued on
variable rate using
BI 3M-Reverse
Repo
• Tradable and
marketable
The remaining interest costs
for financing other health
care as well as humanitarian
handling will be covered by
the Government with a
reference interest rate for Bl
RR 3M (below market rate)
Cluster B :
Cluster B
2021
2022
IDR157 T
IDR184 T
•
Source: Ministry of Finance, Bank Indonesia
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