Indonesia’s central bank injects 32.7 billion USD into financial system
The Bank Indonesia (BI) has injected 503.8 trillion Rp (around 32.7 billion USD) into banks and the debt market to stabilise the rupiah and help support the government’s financing needs to combat the economic shocks of the COVID-19 pandemic.
The headquarters of the Bank Indonesia (Photo: //www.thejakartapost.com/)
Jakarta (VNA) – The Bank Indonesia (BI) hasinjected 503.8 trillion Rp (around 32.7billion USD) into banks and the debt market to stabilise therupiah and help support the government’s financing needs to combat the economicshocks of the COVID-19 pandemic.
BI GovernorPerry Warjiyo said that banks would be obliged to buy government bonds afterthe central bank freed up 102 trillion Rp in liquidity. Starting on May 1, the reserve requirement ratio will belowered by 200 basis points (bps) for commercial banks and 50 bps for shariabanks.
BI’s policy torevoke banks’ obligation to fulfil the Intermediary Macroprudential Ratio (RIM)would add another 15.8 trillion Rp of liquidity, said Perry.
This is inaddition to the 386 trillion Rp worth of liquidity freed by the central bank since the beginningof the year to support the country’s crashing currency and boost banks’liquidity, Perry said.
The centralbank has bought 166.2 trillion Rp worth of government bonds in the secondary market as investorsdumped Indonesian assets over fears about COVID-19, resulting in a slump in thevalue of the rupiah, which depreciated as much as 18.5 percent in early March.
The rupiah hasstarted to gain against the greenback over the last few weeks, strengthening to15,394 Rp per USD as per 11 a.m. on April29 from this year’s low of16,625 per US dollar, according to Bloomberg data./.
Bank Indonesia (BI) said on April 3 that it is in talks with the US Federal Reserve (Fed) about potential currency swaps, while also preparing bilateral swaps with the central banks of China and Australia.
Indonesia will receive loans worth about 7 billion USD from the World Bank, the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) to finance its fight against the raging COVID-19 pandemic.
The Indonesian government has announced that it will provide interest subsidies for small borrowers in banks and finance companies to help them cope with the effects of the COVID-19 pandemic.
Bank Indonesia (BI) has directly purchased 1.7 trillion Rp (108 million USD) worth of sharia sovereign bonds during an auction held by the government in its first such purchases in the primary market.
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Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
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Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realise its ambition of becoming a global EV manufacturing hub.
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The facility was established in response to a growing shift in the Filipino labour force from the Middle East to Japan, where workers are seeking safer working environments.
In the latest Indonesia-US trade agreement in July, the US administration agreed to reduce the reciprocal tariff, which was initially set at 32% by US President Donald Trump last April, to 19%.
Real estate agency ERA Singapore estimated that there are 2,703 condo developments in Singapore today, of which 836 or 31% are at least 30 years old. In 10 years, this number is expected to climb to 1,160, assuming none is sold en bloc.
The new framework is designed to ensure that incoming investments deliver tangible national benefits, such as the creation of high-quality jobs for Malaysians and the development of local company ecosystems and technologies.
Singapore led with a total of 8.8 billion USD in realised investment, followed by Hong Kong and mainland China, Malaysia, and Japan with 8 billion USD, 1.7 billion USD and 1.6 billion USD, respectively.
Thai Acting Prime Minister Phumtham Wechayachai on August 7 outlined his strategy for tackling drug problems in Thailand, aiming for a "Zero Drugs Thailand" within three months.
The US has described Malaysia's role as Chair of the Association of Southeast Asian Nations (ASEAN) as vital in helping ease tension between Thailand and Cambodia.
Indonesia ranks as the world's sixth-largest gold reserve holder, producing an estimated 160 to 200 tonnes annually, mainly through major state-owned enterprises. Despite this, much of the mined gold is held or traded abroad. In 2024 alone, Indonesia exported gold worth 5.4 billion USD while reimporting 2.6 billion USD worth of the metal.
Cambodia and Thailand vowed not to undertake provocative actions that may escalate tensions, including entering the other side’s air space and territory, and refrain from constructing or enhancing military infrastructure.
Trenggono emphasised that the Indonesian government aims to increase the total coverage of MPAs to 97.5 million hectares by 2045. This initiative forms a key component of the “Golden Indonesia 2045” vision, which prioritises sustainable maritime development and environmental protection.
The headquarters of the Bank Indonesia (Photo: //www.thejakartapost.com/) 
