Strengthen Monetary Operations, BI Introduces Foreign Exchange Repo Instruments

Bank Indonesia (BI) has started to implement a new instrument in its monetary operations in the form of foreign exchange repo transactions (foreign exchange) using underlying Bank Indonesia Foreign Currency Securities (SVBI) and Bank Indonesia Foreign Currency Sukuk (SUVBI).

Head of the Monetary and Asset Management Department of the BI Securities, Erwin Gunawan Hutapea, said that this implementation was officially carried out on Monday, March 30, 2026, as part of strengthening monetary instruments.

"Bank Indonesia today, March 30, 2026, implements a new instrument in monetary operations in the form of repo transactions in foreign currencies with underlying Bank Indonesia Foreign Currency Securities (SVBI) and Bank Indonesia Foreign Currency Sukuk (SUVBI)," he said in an official statement on Monday, March 30.

According to Erwin, this policy is part of the strategy to strengthen the market-oriented monetary operations (pro-market).

He added that the goal is to increase the effectiveness of monetary policy transmission as well as accelerate the deepening of the money market and foreign exchange market (PUVA).

In its implementation, this foreign exchange repo transaction can be followed by primary dealers (primary dealers) in the money and foreign exchange markets.

Erwin explained that the presence of this instrument provides an additional alternative for banks in managing liquidity, especially liquidity in foreign exchange.

In addition, the addition of the repo feature on Bank Indonesia's instruments also strengthens the characteristics of SVBI and SUVBI as high quality liquid assets (HQLA).

"Through this strengthening, the secondary market activity of SVBI and SUVBI is expected to increase," he said.

Furthermore, he said that the increase in activity is expected to encourage the deepening of the domestic financial market as well as maintain the stability of the rupiah exchange rate in the midst of ongoing global dynamics.