Bank Indonesia Supports State Budget Funding Of IDR 7.8 Trillion In A Month

JAKARTA - Governor of Bank Indonesia (BI), Perry Warjiyo, said the monetary authority would continue to support efforts to recover the national economy through policy synergy with the government.

"Bank Indonesia continues to purchase SBN (State Securities) in the primary market as part of a policy synergy with the government for the 2021 APBN (State Budget) funding", he said in an official statement as quoted on Friday, July 23.

According to Perry, until July 19, 2021, the purchase of SBN in the primary market was recorded at IDR 124.13 trillion. Of this figure, IDR 48.67 trillion was purchased through the main auction mechanism. While IDR 75.46 trillion through the Greenshoe Option (GSO) mechanism.

According to VOI records, this amount shot up to IDR 7.87 trillion from the previous BI report in mid-June 2021 which was stated at IDR 116.26 trillion.

Meanwhile, the book last month consisted of IDR 40.80 trillion through the main auction mechanism and IDR 75.46 trillion through the GSO mechanism.

To note, BI's role in the burden-sharing scheme in APBN funding is stated in Joint Decrees (SKB) I and II between the Governor of Bank Indonesia and the Minister of Finance which have been approved by the Indonesian Parliament.

"In the future, improving banking credit activity is expected to further enhance the role of liquidity expansion in driving economic growth through the speed of money circulation in the economy", concluded Perry.