JAKARTA Minister of Finance (Menkeu) Sri Mulyani firmly stated that the government and Bank Indonesia (BI) will comply with the provisions of the Joint Decree (SKB) III which will end the validity period at the end of 2022.
According to him, both parties agreed that they would not extend the collaboration contained in the joint decision, after previously SKB I and II had been issued in 2020 and 2021.
The Minister of Finance explained that the synergy contained in the SKB is actually a joint response in an extraordinary atmosphere that aims to overcome the impact of the COVID-19 pandemic.
However, the state treasurer ensures that cooperation with Bank Indonesia can continue in accordance with the mechanisms that have been in effect so far.
"Bank Indonesia and the government still have a good framework. We will adjust that. Thus, the credibility between fiscal and monetary instruments and the independence of the central bank can be maintained within the framework of collaboration which must continue to be improved," he said at a press conference on the Financial System Stability Committee (KSSK), quoted Friday, November 4.
In the future, continued the Minister of Finance, the government will optimize SBN funding sources that will be distributed to investors by paying attention to budget needs in the APBN.
"We together with BI will also communicate with domestic and foreign investors in the context of market guidance so that the market can understand the steps of the fiscal and monetary policy mix," he said.
"We will definitely strengthen this leadership and at the same time provide credible guidance so that we can continue to protect ourselves from various turmoil while maintaining signs of caution," said Minister of Finance Sri Mulyani.
VOI noted that in the 2022 SKB I Bank Indonesia was recorded to have disbursed Rp473.42 trillion through the purchase of SBN to support the APBN. Then, for SKB II, the monetary authority recorded disbursement of Rp201 trillion.
As for SKB III, BI plans to purchase SBN of IDR 224 trillion with the realization until October 19, 2022, worth IDR 138.08 trillion.
For information, the release of SBN to the central bank is the government's strategy to reduce interest costs rather than release them to investors.
It is known that the SBN held by Bank Indonesia only has an interest rate of minus 1 percent of the benchmark interest rate for funds aimed at the non-public goods shopping sector.
Meanwhile, for expenditures aimed at public goods, a 0 percent interest rate is set.
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