Bank Indonesia Ensures Banking Liquidity Acquires Ahead Of Ramadan

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) revealed that banking liquidity and the economy are adequate to encourage continued credit and financing increases.

BI Governor Perry Warjiyo said that in February 2023, the ratio of liquid assets to Third Party Funds (AL/DPK) was recorded at 29.09 percent.

"This development is in line with the stance of liquidity policies that are accommodative by Bank Indonesia to support the availability of funds for banks for lending/financing for the business world," he was quoted as saying by the editor on Sunday, March 19.

Perry explained that economic liquidity is also adequate in supporting economic activities, as reflected in the narrow (M1) and wide (M2) money supply, which grew by 6.6% (yoy) and 7.9% (yoy) respectively last month.

"With lax liquidity, banking interest rates remain conducive in supporting economic recovery," he stressed.

According to Perry, in the money market, the IndONIA interest rate remains low, which was recorded at 5.53 percent on March 15, 2023. The yield of the short-term SBN tenor increased by 50 bps compared to the level at the end of December 2022, while the yield of the long-term SBN tenor remained under control.

It was stated that the 1-month deposit interest rate in February 2023 was also recorded at a low of 4.12 percent, although it increased by 15 bps compared to December 2022.

Then, the February 2023 credit interest rate also remains conducive in supporting credit demand, which is 9.34 percent.

"Bank Indonesia will continue to ensure adequate liquidity to maintain financial system stability and encourage continued increase in credit/financing for national economic recovery," concluded Perry.