JAKARTA Bank Indonesia (BI) reports that the implementation of a Joint Agreement Letter (SKB) between the central bank and the Ministry of Finance related to monetary support for fiscal has entered its final period at the end of 2022.
Previously, the SKB I and SKB II consecutively had been implemented in 2020 and 2021 as part of BI's participation in supporting state finances (APBN) to overcome the impact of the COVID-19 pandemic.
Bank Indonesia Governor Perry Warjiyo said that until December 21, 2022, the monetary authority had purchased Government Securities (SBN) of IDR 144.53 trillion.
"The amount consists of the implementation of SKB I amounting to Rp49.11 trillion and SKB II of Rp95.42 trillion," he said when giving a presentation to the media crew, quoted on Friday, December 23.
Perry explained, according to SKB III, Bank Indonesia will also still purchase SBN in the primary market amounting to IDR 128.58 trillion.
"This will still be used for funding the health and humanitarian budgets in the 2022 State Budget," he said.
For information, Bank Indonesia's Joint Decree with the Ministry of Finance (government) is often referred to as burden sharing. This scheme is based on the group of use of financing for the public interest and non-public interest.
In public financing, the SBN purchased by Bank Indonesia sets an interest rate of 0 percent, so that the government does not spend additional costs on the debt withdrawn. Meanwhile, non-public interest financing is set by the SBN interest rate as large as the market rate and is fully borne by the government.
Meanwhile, SKB III 2022 is the last period of burden sharing and will not be continued with the next SKB because the government must restore the state budget in line with the mandatory deficit below 3 percent of GDP.
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