Support for state budget (APBN) financing is needed to implement the national economic recovery program and handle humanitarian and health issues during the COVID-19 pandemic.
Jakarta (ANTARA) - Bank Indonesia (BI) bought government bonds (SBN) worth Rp974.09 trillion in the primary market during the period from 2020 to November 15, 2022, to support the state budget (APBN) financing.

"Support for state budget (APBN) financing is needed to implement the national economic recovery program and handle humanitarian and health issues during the COVID-19 pandemic," BI Governor Perry Warjiyo stated at a working meeting with the House of Representatives' (DPR's) Commission XI monitored online from Jakarta on Monday.

Warjiyo noted that the support aligns with the mandate of Law No. 2 of 2020. To follow up on the mandate, the BI governor and the finance minister signed a joint decree.

The purchase of SBN for COVID-19 handling comprised SBN KB I worth Rp266.11 trillion, SBN KB II worth Rp397.56 trillion, and SBN KB III worth Rp310.42 trillion.

Meanwhile, the purchase of SBN KB III was specifically designed to handle humanitarian and health issues during the COVID-19 pandemic. The remaining Rp128.58 trillion of SBN KB III will be realized until the end of this year.

Warjiyo echoed BI's commitment to purchasing the remaining Rp128.58 trillion, so that the value of SBN purchased in the primary market would reach Rp1,444 trillion at the end of 2022.

"Hence, the value of SBN that we bought in the primary market for three years will reach Rp1,444 trillion to support APBN for COVID-19 handling and economic recovery in accordance with Law No. 2 of 2020," he stated.

He said the support for APBN financing is one of the central bank's monetary policies to maintain stability and support national economic recovery.

In addition to purchasing SBN in the primary market, the other monetary policy is raising the key interest rate, strengthening stability of the rupiah's exchange rate, and maintaining loose liquidity policy.

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Translator: Agatha Olivia V, Suharto
Editor: Sri Haryati
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