Bank Indonesia Continues To Purchase SBN Total Of IDR 139 Trillion To Fund The State Budget

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) said it was still continuing to purchase Government Securities (SBN) released by the government.

BI Governor Perry Warjiyo said that until September 17, 2021, the central bank had collected SBN worth IDR 139.84 trillion.

"Of this amount, it consists of IDR 64.38 trillion through the main auction mechanism and IDR 75.46 trillion through the Greenshoe Option or GSO mechanism," he said in a press statement as quoted on Wednesday, September 22.

To note, this amount increased by almost IDR 8 trillion in a month after the monetary authority previously reported that the purchase of SBN until August 16, 2021 was IDR 131.96 trillion.

Furthermore, Perry also explained that Bank Indonesia has added liquidity (quantitative easing) in banking by IDR 114.15 trillion this year.

"Through this monetary expansion, banking liquidity conditions in July 2021 were very loose, as reflected in a high ratio of liquid assets to third party funds (AL/DPK) of 32.51 percent and growth of third party funds (DPK) of 10.43 percent. year-on-year (yoy),” he said.

Perry added that economic liquidity also increased as reflected in the money supply in the narrow (M1) and broad (M2) terms, which grew by 14.9 percent yoy and 8.9 percent yoy in July 2021, respectively.

According to him, the money supply growth was mainly supported by fiscal and monetary expansion which increased as well as positive growth in bank credit.

"Going forward, continued improvement in credit activity is expected to further enhance the role of liquidity expansion in promoting economic recovery through the speed of money circulation in the economy," concluded Perry.