U.S. Governor Says He's 'not Ready' To Meet With U.S.

JAKARTA - Governor of Bank Indonesia (BI) Perry Warjiyo said that until May 21, 2021 the monetary authority has purchased state securities (SBN) through the primary market amounting to Rp108.43 trillion.

Of these, Rp32.97 trillion was taken through the main auction. While another Rp75.46 trillion through the mechanism of green shoe option or GSO.

"Bank Indonesia is also continuing to purchase SBN in the primary market as part of policy synergy with the government to fund the 2021 State Budget," he said in an online press conference on Tuesday, May 25, after holding a Meeting of the Board of Governors.

Perry added that the central bank's stance also encourages loose liquidity conditions in boosting the national economic recovery.

"This loose liquidity condition is also reflected in Bank Indonesia's strategy to increase quantitative easing in the banking industry by Rp88.91 trillion in 2021 or until May 21, 2021," he explained.

To be known, in the previous VOI announcement, the purchase of SBN by BI until April 16, 2021 was recorded at Rp101.91 trillion. Of these, Rp28.33 trillion was taken through the main auction mechanism, and another Rp73.58 trillion through GSO.

That is, in the period of about one month until May 21, 2021, the monetary authority is recorded to have purchased bonds released by the government amounting to Rp5.52 trillion.

On that occasion, Perry also announced that the central bank chose to keep the benchmark BI 7-Day Reverse Repo Rate (BI7DRR) at 3.50 percent. Similarly, deposit facility rates and lending facility rates were unchanged at 2.75 percent and 4.25 percent, respectively.

"This decision (to maintain interest rates) is consistent with the low inflation rate, as well as rupiah exchange rate stability, and also supports economic recovery efforts this year," said the Governor of BI.