Bank Indonesia Buys Rp289tn Securities to Help Economic Recovery

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  • TEMPO.CO, Jakarta - Bank Indonesia (BI) stated that it has bought Government Securities (SBN) in the primary market, either through market mechanisms or direct purchases. As of October 8, the central bank has purchased Rp289.86 trillion worth of securities.

    The SBN purchase is expected to help the national economy rebound from the coronavirus slump.

    "With this synergy, the government can focus more on efforts to accelerate State Budget spending as a way to push the national economic recovery (PEN) program," BI Governor Perry Warjiyo said on Tuesday, October 13.

    Perry said BI has also carried out the burden-sharing scheme with the government in the non-public goods funding program for MSMEs, with a budget allocation of Rp90.88 trillion.

    "We are strengthening the synergy between BI's monetary expansion and the government's fiscal stimulus acceleration, in a bid to support the national economic recovery program. BI continues with its commitment in state budget funding by purchasing SBN from the primary market, as an implementation of Law number 2 of 2020," Perry said.

    Read: Rupiah Still Undervalued at 14,700 per Dollar, BI Governor Says

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