Legitimate! Bank Indonesia Is Committed To Funding The 2022 State Budget Of IDR 224 Trillion

JAKARTA - Bank Indonesia (BI) has confirmed that it will continue to support the funding of the 2022 State Budget (APBN) through the purchase of State Securities or SBN in the primary market for a total of IDR 224 trillion.

BI Governor Perry Warjiyo said the move included contributions in financing health and humanity amid the current pandemic situation.

"The agreement between BI and the government is stated in the Joint Decree (SKB) Volume III between the Governor of Bank Indonesia and the Minister of Finance on the Scheme and Coordination Mechanism in Financing the Handling of the COVID-19 Pandemic," he said at an online press conference on Tuesday, August 24.

According to Perry, what the monetary authority will do is a continuation of the same scheme since 2020 through SKB I and SKB II.

To note, for the 2020 period, the monetary authority reported that it had acquired Rp473 trillion of SBN as a form of participation in supporting state finances during a pandemic.

As for 2021, VOI noted that until August 16, 2021, BI's purchase of SBN in the primary market was recorded at Rp. 131.96 trillion, consisting of Rp. 56.50 trillion through the main auction mechanism and Rp. 75.46 trillion through the Greenshoe Option (GSO) mechanism.

This number increased compared to the recapitulation on July 19, 2021, which was recorded at Rp124.13 trillion, with details of Rp48.67 trillion of which was purchased through the main auction mechanism. Meanwhile, Rp75.46 trillion through GSO.

"BI will continue to purchase SBN for this year with an estimate of IDR 215 trillion," concluded Bank Indonesia Governor Perry Warjiyo.