BI Says Purchase Of SBN In The Securrency Market Is Part Of Triple Intervention's Strategy

JAKARTA - Bank Indonesia (BI) has opened its voice regarding the purchase of Government Securities (SBN) in the secondary market.

Executive Director of the BI Communication Department Ramdan Denny Prakoso emphasized that the move was part of a triple intervention strategy, namely intervention in the spot market, non-deliverable forward (NDF)/Domestic Non-Deliverable Forward (DNDF) market, as well as through the purchase of SBN in the secondary market.

Denny conveyed that this step aims to support banking liquidity, so that banks have sufficient space to manage liquidity and distribute it optimally to the credit sector.

"The governor has said that how Bank Indonesia has purchased SBN in the secondary market, in the SBN purchasing market it is more than Rp90 trillion and this of course helps banking liquidity conditions to of course how they manage liquidity and we hope that liquidity can be maximally distributed to bank credit, something like that," he told the media crew, Monday, May 26.

Ramdan emphasized that all policies were carried out, such as in purchasing SBN, Bank Indonesia had carefully taken into account its impact on the national economy and banking liquidity.

Until now, he said that interest rates in the money market remained stable and in line with the Bank Indonesia (BI Rate) policy interest rate, and did not show any significant turmoil in the domestic money market.

"We also see how the money market is, interest rate movements are also stable. This shows that actually banks are able to manage liquidity well and the turmoil is barely available in the domestic money market," he concluded.

Previously, Bank Indonesia (BI) revealed that 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.