Ahead Of The End Of The Burden Sharing Era, BI Borong, Government Securities Of Rp. 142 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA - The Governor of Bank Indonesia (BI) Perry Warjiyo stated that his party was still continuing to purchase state securities (SBN) in accordance with the agreement contained in the Joint Decree (SKB) volume III which ends on December 31, 2022.

"As of November 15, 2022, the central bank has absorbed SBN worth IDR 142.35 trillion," he said at a press conference at the Board of Governors' Meeting (RDG) quoted on Sunday, November 20.

According to Perry, the implementation of SKB III is BI's commitment to the government through the Ministry of Finance which is in line with the national economic recovery program.

"We are participating in health and humanitarian financing in the context of handling the impact of the COVID-19 pandemic," he said.

For information, SKB III 2022 is the last agreement between Bank Indonesia and the government in an effort to bear with state finances (APBN) or burden sharing. As for SKB III, the monetary authority is planned to absorb SBN up to Rp224 trillion.

Meanwhile, for SKB I for the 2020 period, the realization value of SBN bought by BI reached IDR 473.4 trillion. Then for SKB II for the 2021 fiscal year, it is known that the SBN purchased is IDR 201 trillion.

For information, the release of SBN to the central bank is the government's strategy to reduce interest costs rather than release them to investors.

It is known that the SBN held by Bank Indonesia only has an interest rate of minus 1 percent of the benchmark interest rate for funds aimed at the non-public goods shopping sector.

Meanwhile, for expenditures aimed at public goods, a 0 percent interest rate is set.

"The loose liquidity also provides encouragement for further economic recovery," concluded BI Governor Perry Warjiyo.