Perry Warjiyo: Bank Indonesia's Contribution To State Budget Reaches IDR 124.13 Trillion

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

JAKARTA - Governor of Bank Indonesia (BI), Perry Warjiyo, revealed that the monetary authority will continue to support the government in terms of fiscal financing.

Most recently, Perry said that as of July 19, 2021, BI had spent IDR 124.13 trillion to buy Government Securities (SBN) from the primary market as a form of participation in supporting the 2021 State Revenue and Expenditure Budget (APBN).

"This is a form of close cooperation and coordination with the government's fiscal policy to maintain macroeconomic stability and also support economic recovery measures", he said at a virtual press conference of the Financial System Stability Committee on Friday, August 6.

In his explanation, the BI boss detailed that the disbursed funds went into the government's pockets through the purchase of Government Securities in the primary market amounting to IDR 48.67 trillion. While the other IDR 75.6 trillion was obtained through the purchase mechanism of the Greenshoe Option (GSO).

"Through the monetary expansion, the market liquidity conditions are quite loose," he said.

Not only that but BI is also said to have placed funds in banks amounting to IDR 101.10 trillion as a quantitative easing measure to encourage credit expansion by business actors.

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