Finance Minister: BI to Buy Rp439 Trillion in Govt Bonds

Jakarta, InfoPublik – Finance Minister Sri Mulyani Indrawati stated that Bank Indonesia (BI) will buy Rp439 trillion worth of government bonds (SBN) in the primary market and private placement. She explained that the government and BI agreed to a burden-sharing mechanism stated in a Joint Ministerial Decree (SKB) III.

"The SKB III adopts our principles between BI and the government, where two parties each maintain a credible fiscal and monetary safeguard for the economy. In considering the State Budget, fiscal space and sustainability over the medium term are important," Sri Mulyani said at a press conference on Tuesday, 24 August.

Finance Minister added that BI will also maintain the stability of inflation and the rupiah exchange rate. "We both see the sustainability of the government's State Budget and BI's balance sheet. This is an important requirement for sustainable economic development," said Sri Mulyani.

Both parties will maintain their independence in issuing policies. Sharing the burden is merely a concept of working together to recover the economy from the COVID-19 pandemic impact, one which is by ensuring that the spending needs can be met.

"This joint decision concerns the scheme and coordination between the government and BI in the context of financing the handling of health and humanity," said Sri Mulyani.

Writer/Reporter: Isma