"(The purchase) is part of the efforts to accelerate implementation of the PEN Program by maintaining macroeconomic stability," BI Governor Perry Warjiyo remarked following a two-day meeting of BI's board of governors ending on Thursday.
Warjiyo spoke of the BI having bought Rp72.49 trillion of the SBN from the primary market through a market mechanism. The purchase was based on a joint decree of the BI governor and finance minister, dated April 16, 2020.
The purchase of SBN from the primary market through the market mechanism included those realized under a greenshoe option and private placement scheme.
BI later bought SBN worth Rp270.03 trillion through a direct mechanism in accordance with a joint decree of the BI governor and finance minister on July 7, 2020.
Additionally, BI and the government concurred on a burden-sharing scheme worth Rp114.81 trillion for financing non-public goods specifically for micro, small, and medium businesses in accordance with the joint decree of the BI governor and finance minister, dated July 7, 2020.
"Through the synergy, the government gets more in accelerating the realization of the 2020 state budget to drive the national economic recovery," he stated.
The government allocated the budget ceiling of Rp695.2 trillion for the PEN Program, thereby leading to the 2020 budget deficit widening to up to 6.34 percent of the national gross domestic product (GDP).
By Nov 9, 2020, the realization of budget fund for the PEN Program had reached Rp383 trillion, or 55.1 percent of the budget ceiling.
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