BI's Initial Repo Transaction With SMF Bonds Reaches IDR 290 Billion

JAKARTA - Bank Indonesia (BI) now officially allows the use of corporate bonds as an underlying in repurchase agreement (repo) transactions at the central bank.

As for the first time, BI entered the bonds of PT Sarana Multigriya Finansial (Persero) or SMF as securities that could be deposited with BI. This step is part of an effort to deepen the housing financing market as well as add liquidity instruments in the market.

Senior Deputy Governor Destry Damayanti said that the proceeds from the repo auction with underlying SMF corporate bonds reached Rp290 billion on November 10, 2025, with an interest rate of 4.85 percent. This value is the realization of the first repo transaction with a tenor of one week.

He explained that although the total outstanding SMF bonds reached around Rp. 25 trillion, not all of them could be used as BI underlying repo because there are certain requirements, one of which is that bonds must be actively traded in the last 30 days.

"Even though it was outstanding for SMF, it was around Rp. 25 trillion, but then we also have conditions, so for example the last 30 days have been actively traded, and then the tenors are not, but especially those who are actively traded," he said on the agenda. Introduction of SMF Debt Letter as an Underlying Transaction Repo Bank Indonesia, Thursday, November 20.

Destry added that of the nominal transactions generated, nine banks have participated in joint SMF repo transactions with BI and the BI repo interest rate for SMF bonds is below the banking special rate, thus providing incentives for banks to take advantage of these facilities because they can reduce cost of funds.

He hopes that more and more bond holders will take advantage of BI's repo facilities as a source of liquidity.

Furthermore, Destry emphasized that the development of repo transactions is an important part of the blueprint for the development of the BI money market for the 2025 '30 period.

In addition, he said that the Indonesian repo market is still developing compared to other countries such as Thailand and Malaysia, where repo transactions are much more advanced.

"If this repo has a colateral, underlying is not a guarantee, there is a colateral. So this causes the market to be secure, it becomes safe. If the market is secure, make sure the cost will also go down. This is what we continue to encourage for repo transactions," he explained.

Destry also noted that the volume of repo transactions in the Indonesian money market had increased significantly, compared to 5 years ago from around Rp509 billion per day to Rp17.8 trillion per day in 2025.

"Indeed, that is our extraordinary effort with the OJK, with the Ministry of Finance, the three of us at that time, the previous OJK, we have started that, how the repo must continue to grow. Because earlier we wanted to establish a safe market," he said.

He conveyed that the BI repo facility for SMF bonds is considered to be able to strengthen the housing sector because it makes SMF funding cheaper and liquider, so that banks can obtain liquidity more easily and distribute mortgages at lower costs.

"So let's have the same commitment in order to deepen our financial market, so that not only stability that we can get, but also become a source of financing, as is now the government's target, how to buy housing, we must be able to support together," he concluded.