Keep Market Liquidity, Bank Indonesia Lowers SRBI Volume
YOGYAKARTA Bank Indonesia (BI) has lowered the volume of issuance of Rupiah Bank Indonesia Securities (SRBI) in the money market to maintain adequate liquidity in the financial market.
Director of the Department of Monetary Management and BI Securities Ronald D Parluhutan explained that the reduction in the issuance of SRBI was carried out in a measured manner, this was reflected in the declining value of SRBI issuance from Rp923.25 trillion at the end of December 2024 to Rp320.01 trillion as of August 19, 2025.
This effort is to support the liquefactariat of the market both in the money market and banking. We hope this can boost economic growth in a sustainable manner," he said in BI policy activities to Maintain Stability and Drive Growth, Friday, August 22.
According to Ronald, the issuance of SRBI is part of BI's pro-market monetary operation to support policy transmission, deepen the money market, maintain stability of incoming capital flows, and aim to maintain the stability of the rupiah exchange rate.
For information, BI has lowered the benchmark interest rate (BI Rate) five times, so that it is currently at the level of 5 percent. The decline in the BI Rate also has an impact on reducing the SRBI interest rate, which in the 12-month tenor was recorded at 5.34 percent as of August 8, 2025.
Although the SRBI interest rate has decreased, SRBI's secondary market transactions remain stable where non-resident ownership of SRBI by non-resident investors on July 31, 2025 was recorded at IDR 146.77 trillion or 19.81 percent of the total SRBI volume which reached IDR 740.776 trillion.
"So the ownership of non-residents is still maintained," he said.
For information, the majority of SRBI ownership is still dominated by banks with a value of IDR 549.76 trillion (74.21 percent), followed by BI of IDR 11.8 trillion (1.6 percent), and domestic investors with a portion of IDR 32.3 trillion (4.37 percent).
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Ronald juga menyampaikan penurunan volume penerbitan SRBI berdampak pada likuiditas pasar keuangan, karena investor cenderung mengalihkan dana dari pasar uang ke instrumen investasi lain.
“Dengan penurunan komposisi SRBI di instrumen operasi moneter ini menyebabkan operasi moneter pro-market diarahkan pada tenor yang lebih pendek untuk mendukung likuiditas,” jelasnya.
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Ronald also said that the decrease in the volume of SRBI issuance had an impact on financial market liquidity, as investors tended to shift funds from the money market to other investment instruments.
"With the decline in SRBI composition in the monetary operation instrument, the pro-market monetary operation is directed at shorter tenors to support liquidity," he explained.