Wednesday, 22 May 2013 | 19:15
Pertamina spokesman stated that the cooperation was terminated
Wednesday, 22 May 2013 | 19:01
Khofifah informed that several political parties have been
offered with kickbacks in exchange for their supports.
Friday, 01 June, 2012 | 16:54 WIB
Bank Indonesia Balance Deficit at Rp25.15 T
TEMPO Interactive, Jakarta:Bank Indonesia has recorded a deficit of Rp25.15 trillion in its balance in 2011, or higher than the previous year at Rp21.15 trillion. The largest burden that Bank Indonesia must incur is in monetary controls and service costs of giro to the government.
Monetary controlling costs have increased from Rp24.40 trillion to Rp30.35 trillion. On the other hand, the cost of government giro has climbed from Rp2.43 trillion to Rp2.67 trillion.
Dodi Budi Waluyo, Bank Indonesia’s executive director of strategic planning and public relations, estimates the deficit in balance may be lower if the plan to convert government bonds into tradable state securities is realized.
“The conversion can help reduce the cost of open market operations,” Dodi said. “Therefore Bank Indonesia doesn’t want to rush and buy bonds because following the purchase, if Bank Indonesia is disbursing more liquidity, the central bank will also have to absorb more,” Dodi explained.
The Bank Indonesia report as of December 31, 2011 stated that the central bank’s expenses for open market operations had increased compared to the same period in 2010. By the end of 2011, open market operations cost Rp30.09 trillion, while in 2010 the figure hit Rp24.18 trillion. Dodi also said the increasing burden of open market operations was an expected consequence of increasing liquidity.
“If liquidity volume increases, the pricing increases; because more [money] is required to pay the banks,” Dodi said.