BI Absorbs Rp65 Tn State Bonds in 3 Months

VIVAnews – Bank Indonesia (BI) has purchased Rp65 trillion worth of State Bonds within the last three months to help stabilize rupiah’s exchange rate. 

BI Deputy Governor, Hartadi A Sarwono, said that the crisis management over matters that Europe and the US are dealing with now is different. Therefore, BI is making intervention by purchasing State Bonds in secondary market.  At the same time, BI also penetrates into foreign exchange market to purchase rupiah.

“Back then in 2008, we only intervened in foreign exchange,” said Hartadi on Tuesday, Dec 13.

For the time being, BI is the biggest player in State Bonds. The State Bonds that BI own will be used for reverse repurchase agreement by banks, as a substitute of monetary instrument, such as Bank of Indonesia Certificate.

According to Hartadi, the global confusion following European debt crisis will remain.  Meanwhile, the prediction over global economic growth is negative at between 4 percent an 3.6 percent and it may as well be 2.6 percent next year.