JAKARTA. Bank Indonesia (BI) purchased Rp 51.17 trillion worth of government securities in the primary market as of 24 September 2020.

According to BI Governor Perry Warjiyo, the purchase of government securities in the primary market was based on an agreement with Finance Minister Sri Mulyani Indrawati through the market mechanism. In this matter, BI acts as a standby buyer when the market is unable to absorp the government securities issuance target set by the government.

BI purchased government securities in the primary market amounting to Rp 33.1 trillion in 10 auctions launched by the government in the first semester of 2020. As of 24 September, the central bank's government securities purchase increased to Rp 51.17 trillion via 22 government auctions. "The purchase is part of BI's commitment to support the funding of the 2020 State Budget," Mr Warjiyo said at a work meeting with the House of Representatives' Commission XI, Monday (28/9).

BI, Mr Warjiyo added, also realised government securities purchase with a burden sharing scheme based on Joint Decree II on 7 July 2020 amounting to Rp 183.48 trillion. (AM/MS)