At The DPR, Bank Indonesia Admits That It Disbursed Rp137 Trillion To Help The Government Fund The 2021 State Budget

Senior Deputy Governor of Bank Indonesia Destry Damayanti. (Photo: screenshot of the DPR RI Youtube)

JAKARTA - Senior Deputy Governor of Bank Indonesia (BI) Destry Damayanti said that the purchase of state securities (SBN) for the 2021 State Budget funding had reached Rp137.49 trillion. The record is a recapitulation calculated from January to August 31 this year.

According to Destry, the amount consists of Rp62.03 trillion through the main auction mechanism and another Rp75.46 trillion through an additional auction or green shoe option (GSO).

"In addition, Bank Indonesia also purchased IDR 8.6 trillion of SBN from the secondary market in order to maintain the stability of the rupiah exchange rate and SBN itself," he said while attending a Working Meeting with Commission XI of the DPR RI at the Senayan Parliament Complex, Jakarta, Tuesday, September 14. .

Destri explained, thus the SBN that has been collected by the central bank to date has reached a total of Rp146.11 trillion.

Furthermore, he also explained about the purchase of SBN in 2020 which was said to be Rp.473.42 trillion. This value is in the form of purchases in the primary market amounting to Rp75.86 trillion and purchases for burden sharing of Rp397.56 trillion.

"BI also bought SBN from the secondary market for Rp166.2 trillion to stabilize the rupiah exchange rate last year," he continued.

To note, the steps of the monetary authority to help fund the State Revenue and Expenditure Budget are contained in a Joint Decree (SKB) between the BI Governor and the Minister of Finance starting in 2020 in response to the COVID-19 pandemic.

Until now, the SKB has reached volume III which is a commitment for funding until 2022.

Just so you know, the government must pay interest on SBN purchased by Bank Indonesia at the BI rate minus 1 percent for non-public goods spending. Meanwhile, 0 percent interest is charged for purchases aimed at public goods.

The current reference interest rate for Bank Indonesia is 3.5 percent with a deposit facility rate of 2.75 percent and a lending facility interest rate of 4.25 percent.