Indonesia's COVID-19 Vaccination and Economic Resilience Strategy
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
Bl reverse repo
3 Months Tenor
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 reverse repo
3 Months Tenor
GOVERNMENT
The issuance of
Government
Securities is done
through a private
placement: reducing
the target for SBN
auction and manage
cost of debt
All Government
Securities are issued
at variable rate
using BI 3-month
Reverse Repo
Interest Rate.
SBN is 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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