Inflation Control and Financial Facilities Strategy
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
GOVERN
One-off Policy
in 2020
Prioritize good governance
SUSTAINABLE
Source: Bank Indonesia
(as of 17 November 2020)
Bl as the back-stop
for Non-public Goods
scheme
•
•
•
•
•
Bank Indonesia continues its commitment to funding the
2020 state budget through SBN purchases in the primary
market in accordance with Act No. 2 of 2020, through market
mechanisms and private placement, as part of the efforts to
accelerate the national economic recovery program, while
maintaining macroeconomic stability
As of 17th November 2020, Bank Indonesia had purchased
Rp72.49 trillion worth of SBN in the primary market through
market mechanisms pursuant to the Joint Decree of the
Minister of Finance and Governor of Bank Indonesia issued
on 16th April 2020, including auction schemes, greenshoe
options (GSO) and private placement
Meanwhile, funding realisation and burden sharing to fund
public goods in the 2020 state budget by Bank Indonesia
through private placement in accordance with the Joint
Decree of the Minister of Finance and Governor of Bank
Indonesia issued on 7th July 2020 currently stand at
Rp270.03 trillion¹
Bank Indonesia has also realised burden sharing with the
Government to fund non-public goods-SME totaling Rp114.81
trillion pursuant to the Joint Decree of the Minister of
Finance and Governor of Bank Indonesia issued on 7th July
2020.
Through such synergy, the Government can focus on
accelerating 2020 state budget realisation in order to drive
national economic recovery momentum
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