Investor Presentaiton
Strengthening Bank Indonesia's Policy Mix to Mitigate COVID-19
BHINNEKA
1
3
Lower BI /-day
Reverse Repo
Rate (BI/DRR)
Stabilization of
Rupiah
Money Market
and forex
Quantitative
easing
BGM 19-20 FEB,
2 MARCH, AND 18-19
MARCH 2020
1. lower BI7DRR by 25 bps in
February to 4,75%, and
other 25 bps in March to
4,50%
2. Lower a 50bps of daily
rupiah reserve
requirement (RR) for the
banks engaged in export-
import financing, and
expanding rupiah RR cut
for SME
3. Lower Foreign Exchange
Reserve Requirement
from 8% to 4%
4. Rupiah accounts (vostro)
of foreign investors as
underlying of DNDF
5. Domestic custodian bank
for global investors
6. Triple intervention: spot,
DNDF, & purchasing SBN
in the secondary market
Daily FX swap auction and
Repo auction of SBN
Relaxation of
Macroprudential
Policy
7.
6
Payment System
BGM Board of
Governors Meeting
Source: Bank Indonesia
8. Liquidity injection through
monetary operation
9. Relaxation of
Macroprudential
Intermediation Ratio
10. QRIS campaign to SME,
traditional markets,
students and worship
places
11. Lower SKNBI cost
BGM 13-14 APRIL
AND 18-19 MAY 2020
1. Hold the BI 7-Day Reverse
Repo Rate at 4.50% for
external stability &
stimulate growth
2. Strengthening the intensity
of triple intervention policy
3. Providing liquidity for the
banking industry on
restructuring MSME loans
and ultra-micro with formal
loans
4. Lower the rupiah RR ratios
by 200bps for conventional
commercial banks and by
50bps for Islamic banks
5. Strengthening Monetary
operations and Islamic
financial market deepening
through FLisBI, PASBI and
SiPA
6. Relaxing the additional
demand deposit obligations
on the MIR
7. Raised the MLB by 200bps
for conventional
commercial banks and by
50bps for Islamic banks
8. Increasing the non-cash
payment instruments
uptake
9. Strengthening policy mix
and coordination with the
Government & other
authorities
10. Accelerating
implementation of digital
economy and finance
BGM 17-18 JUNE 2020 AND
15-16 JULY 202
BGM 18-19 AUGUST 2020
1. Lower BI7DRR to 4,00%, 25
bps in June and 25 bps in
July
1.
Hold BI7DRR at 4,00%
2.
Focusing on the quantity
2. Maintaining Rupiah
exchange rate stabilization
policy in line with the
currency's fundamental
value and market
mechanisms
3. Providing reserve
requirement remuneration
of 1.5% per year for banks
meeting daily and average
rupiah reserve requirements
4. Strengthening a synergized
expansive monetary policy
response with accelerated
fiscal stimuli from the
Government:
ā firmly committed to funding
the APBN 2020 through SBN
purchases in the primary
market to finance the
budgets for healthcare,
social protections, sectoral
government ministries and
agencies & local
government
5.
Burden sharing with the
Government to accelerate
MSME and corporate sector
recoveries
Expediting payment system
digitalization to hasten the
digital economy and
finance implementation as
part of the economic
recovery efforts
channel by providing liquidity
to stimulate economic
recovery from the COVID-19
pandemic, including BI
supporting for the
Government in accelerating
state budget realization in
2020
3. Maintaining rupiah exchange
rate stabilization policy in line
with the currency's
fundamental value and market
mechanisms
4. Strengthening monetary
operations strategy in order to
accelerate monetary policy
transmission
5. Lowering the minimum limit of
down payment on green
automotive loans/financing
from 5-10% to 0%, in
compliance with prudential
principles
6. Strengthening synergy with the
banking industry, FinTech,
Government and relevant
authorities to accelerate
digitalization, amongst others,
by supporting SME
digitalization and the Made in
Indonesia National Movement
(GERNAS BBI), while expanding
community based QRIS
acceptance and promoting the
use of QRIS for e-commerce
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