Bank Indonesia Has Purchased SBN Capai IDR 96.41 Trillion Until May 20, 2025

JAKARTA - Bank Indonesia (BI) said it had purchased Government Securities (SBN) of IDR 96.41 trillion as of May 20, 2025.

Bank Indonesia Governor Perry Warjiyo said the purchase of Government Securities through the secondary market was IDR 64.99 trillion and the primary market was in the form of State Treasury Letters (SPN), including sharia, amounting to IDR 31.42 trillion.

"In the future, Bank Indonesia will continue to optimize its pro-market monetary operations strategy to increase the effectiveness of monetary policy transmission in achieving inflation targets and maintaining the stability of the Rupiah exchange rate," Perry said at a press conference, Wednesday, May 21.

According to him, the purchase of SBN from the secondary market to strengthen the expansion of monetary policy liquidity, as well as reflect the close synergy between monetary policy and government fiscal policy.

Therefore, he conveyed that the pro-market monetary operations strategy will also continue to be optimized to support the effectiveness of monetary policy transmission through adequacy of liquidity.

"In this regard, the monetary instruments for the Pro-Security Market of Bank Indonesia (SRBI), Bank Indonesia Valas Securities (SVBI) and Bank Indonesia Valas Sukuk (SUVBI) continue to be optimized," he explained.

As for May 19, 2025, the total position of the SRBI instrument was recorded at IDR 869.67 trillion, or decreased from IDR 923.53 trillion in early January 2025.

Meanwhile, SVBI and SUVBI instruments on 19 May 2025 were recorded at 1.97 billion US dollars and 306 million US dollars, respectively.

Perry conveyed that the implementation of major dealers (primary dealers) since May 2024 has also further increased SRBI transactions in the secondary market and repurchase agreement between market participants.

Meanwhile, he said that the pro-market monetary operations strategy was continuously optimized to strengthen the transmission of monetary policy through interest rates, especially in banks.

In the money market, in line with the decline in the BI-Rate in January 2025 and the monetary operation of Bank Indonesia, the INDONESIA interest rate continued to decline to 5.77 percent on May 20, 2025, from 6.03 percent in early January 2025.

The SRBI interest rate for tenors 6, 9, and 12 months on May 16, 2025 also decreased, from 7.16 percent each; 7.20 percent; and 7.27 percent in early January 2025 to 6.40 percent; 6.44 percent; and 6.47 percent.

Meanwhile, the SBN yield for the 2-year tenor decreased from 6.96 percent to 6.16 percent, while for the 10-year tenor it decreased from 6.98 percent to 6.84 percent.

However, he said that the banking interest rate was still relatively high where in April 2025, the 1-month deposit rate was recorded at 4.83 percent, an increase from 4.8 percent in early January 2025, with a tendency of banks to offer higher deposit rates than published.

"Bank credit interest rates are still relatively high, which was recorded at 9.19 percent in April 2025, relatively the same as 9.20 percent in early January 2025," he said.

Perry said that in the future, Bank Indonesia considers interest rates to be lowered to encourage increased lending in order to support higher economic growth.