Helping The Government Fund The State Budget, Bank Indonesia Disburses IDR 17 Trillion To The State Treasury

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - Bank Indonesia (BI) reports that as of April 14, 2022, the number of purchases of Government Securities (SBN) has reached a value of Rp. 17.81 trillion.

BI Governor Perry Warjiyo said that the SBN collection was obtained through the main auction mechanism, greenshoe option, and private placement.

"This is part of the fiscal-monetary coordination as stated in the Joint Decree of the Minister of Finance and the Governor of Bank Indonesia which is valid until December 31, 2022," he said in an online press conference after the Board of Governors Meeting on Tuesday, April 19.

According to Perry, the synergy between the central bank and the government is a reflection of the right policy mix in the context of national economic recovery.

"Bank Indonesia will continue to purchase SBN in the primary market to fund the 2022 State Budget in the context of the national economic recovery program," he said.

Furthermore, Perry explained that the purchase of SBN has taken into account the condition of the SBN market and its impact on economic liquidity.

"In March 2022, economic liquidity also remained loose, as reflected in the narrow (M1) and broad (M2) money supply which grew by 18.68 percent year-on-year and 13.27 percent year-on-year, respectively. years," he explained.

According to VOI records, in 2021 the amount of liquidity injected by the monetary authority into the government through a similar mechanism will reach Rp201 trillion. Meanwhile, for the 2020 period, it amounted to Rp.473.42 trillion, consisting of purchases in the primary market of Rp.75.86 trillion and purchases for burden sharing of Rp.397.56 trillion.

Meanwhile, BI's plan to purchase Government Securities this year is IDR 224 trillion.