Investor Presentaiton
Liquidity Remain Loose In Line with Accommodative Monetary
Policy Stance to Support the Economic Recovery
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
SUN/SBSN tradable
maintaining inflation
in the target range
One-off Policy
in 2020
GOVERN
Prioritize good governance
SUSTAINABLE
LAST RESORT
Bl as the back-stop
for Non-public Goods
scheme
Bank Indonesia has injected liquidity through quantitative
easing to the banking industry totalling Rp114.15 trillion in
2021 (as of 16th August 2021)
In addition, Bank Indonesia continues to purchase SBN in
the primary market is an integral part of policy synergy
between Bank Indonesia and the Government to fund the
2021 State Revenue and Expenditure Budget (APBN). As of
16th August 2021, SBN purchases in the primary market
stood at Rp131.96 trillion, consisting of Rp56.50 trillion
through primary auction and Rp75.46 trillion through
greenshoe options (GSO)
The expansive monetary policy stance supports loose
liquidity conditions in the banking industry, as reflected in
July 2021 by a ratio of liquid assets to deposits of 32.51%
and deposit growth of 10.43% (yoy)
Liquidity in the economy has also increased, as indicated
by narrow (M1) and broad (M2) money supply aggregates,
which grew 14.9% (yoy) and 8.9% (yoy) respectively in July
2021. The primary drivers of money supply growth are
expansive fiscal and monetary policies as well as positive
growth of outstanding loans disbursed by the banking
industry. Moving forward, increasing lending activity is
expected to expand the contribution of liquidity in terms of
driving economic recovery through a higher velocity of
money in the economy
Source: Bank Indonesia
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