JAKARTA - Bank Indonesia (BI) stated that the steps to normalize monetary policy through a gradual increase in the Statutory Reserves (GWM) in the rupiah will not disrupt the national banking sector.
BI Governor Perry Warjiyo said that through the liquidity policy, the central bank also provides its own incentives for the implementation of the Statutory Reserves.
"The gradual adjustment of the rupiah statutory reserve requirement and the provision of incentives for the reserve requirement from March 1 to July 15, 2022, absorbs banking liquidity of around IDR 219 trillion," he said when giving a statement to the media earlier this week.
Perry guarantees that the absorption of this liquidity will not reduce the ability of banks in lending and financing to the business world and participation in purchasing government securities to finance the state budget.
"The disbursement of credit and bank financing to the business world continues to show recovery with adequate liquidity being maintained," he asserted.
On that occasion Perry also conveyed that according to the Joint Agreement between BI and the Ministry of Finance, the SBN purchase scheme in the primary market will continue until the end of the year. As of July 20, 2022, the central bank is said to have poured funds of no less than IDR 56.11 trillion into the 2022 State Budget (APBN).
"This is in line with Bank Indonesia's commitment to the national economic recovery program as well as financing for health and humanitarian care in handling the impact of the COVID-19 pandemic," concluded BI Governor Perry Warjiyo.
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