TEMPO.CO, Jakarta - Bank Indonesia (BI) has issued a new regulation to enhance monetary policy transmissions. The rule is set forth as PBI No. 20/5/PBI/2018 on Monetary Operation Improvements.
"The improvement of monetary policies provisions is in line with BI's effort to reform monetary policies since 2016," BI director for communications Agusman said a press release published on the central bank's website, Monday, April 23.
According to Agusman, PBI No. 20/5/PBI/2018 on Monetary Operation Improvements has 3 main substances. The first is to merge conventional and sharia monetary operations.
The second is to eliminate the financing-to-funding ratio as a requirement for a sharia open market, and to include the provisions of Bank Indonesia Securities (SBBI) in foreign exchange. The third is to strengthen licensing in the participation in monetary operations.
Monetary operation BI's way to implement monetary control, both in the money market and foreign exchange market, in an integrated manner. The open market operations and standing facilities can be done both conventionally or by adhering to and sharia principles.
BI director of monetary management Rahmatullah said there are currently 115 banks that follow monetary operations.
AGOENG WIJAYA
