Increasing Credit, BI Encourages Banks to Conduct Repo

Governor of Bank Indonesia Perry Warjiyo. (Photo: Doc. ANTARA)

JAKARTA - Governor of Bank Indonesia (BI) Perry Warjiyo said he would encourage banks to start carrying out repurchase agreements (Repo) on state securities (SBN) they own to encourage higher credit distribution.

“We want banks to also repossess the SBN they own. Not saved (saved) at all. "If this is repo, it could encourage credit," said Perry at the launch of the 2023 Indonesian Economic Report, Wednesday, January 31.

Perry assessed that this step was taken because the liquid assets for third-party funds (AL/DPK) in November 2023 were high, namely at the level of 27.86 percent in line with the high level of banking placements in securities classified as liquid, and the implementation of KLM.

Perry guaranteed that if banks carry out a repo it will not reduce liquidity because BI will provide liquidity incentives to banks.

“We ensure that liquidity will be more than sufficient. "We will continue to provide liquidity incentives, including encouraging priority sectors," said Perry.

Perry hopes that credit growth in 2024 will reach 10 percent to 12 percent so that Indonesia's economic growth will also be encouraged because economic activity will increase.