“Bank Indonesia Senior Deputy Governor Reveals Banks Hold IDR 1,300 Trillion in Government Securities”

Jakarta, CNBC Indonesia – Bank Indonesia Senior Deputy Governor Destry Damayanti revealed that the assets of Government Securities (SBN) owned by banks reached IDR 1,300 trillion. He said that this amount was equivalent to 24% of the total SBN released by the government.

“Currently, SBN owned by banks accounts for 24 percent of the total outstanding (circulating) SBN. Or around Rp. 1,300 trillion of SBN owned by banks and almost all banks have SBN,” said Destry in signing the Joint Parent Repo and Socialization of Repo Transactions, Monday (29/5/2023).

According to Destry, if you look at it as the underlying, of course the bank should have the capacity to carry out the repo.

Repo transactions are consistently on an increasing trend. In 2023, in terms of terms, the average daily transaction has reached IDR 11.4 trillion, an increase of 57% compared to 2022. This figure is also far from pre-pandemic conditions, where the average daily Repo transaction was only around IDR 700-800 billion per day.

The number of perpetrators has also increased from only 12 banks in 2019 to around 34 banks in 2023.

He also considered that banks should have the capacity to conduct repo of their SBN. As a result, the establishment of a CCP or Central Counter Party is necessary to develop an efficient repo market.

(ha/ha)