Bank Indonesia Buys Rp457tn State Bonds to Boost Economy



Laila Afifa

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  • TEMPO.CO, Jakarta - Bank Indonesia (BI) purchased state bonds worth Rp457.3 trillion up until November 17. Meanwhile, at the primary market, BI bought Rp72.49 trillion state securities through a mechanism agreed by the Finance Ministry and the BI Governor on April 16, 2020, which are greenshoe options and private placements.

    “As an attempt to support the acceleration of the PEN program implementation and maintain the stability of the macroeconomy,” said Bank Indonesia Governor Perry Warijo on a virtual press conference, Thursday, November 20. 

    This step by Bank Indonesia is to continue the commitment to funding the 2020 state budget through purchasing state securities overseen by Law No.2/2020. 

    Meanwhile, the public goods funding in 2020’s state budget was done through a direct state securities purchase mechanism the finance ministry and Bank Indonesia agreed upon on July 7, 2020, for Rp270.03 trillion.

    The Central Bank Governor asserts that the synergy can enable the government to accelerate this year’s state budget realization that will help recover the national economy

    Read: JCI Closes Up after Bank Indonesia Rate Cut