BI Kuasai Surat Berharga Negara Hingga 28%, Apa Risikonya!

Summary

The video discusses the risks associated with Bank Indonesia's (BI) ownership of government bonds (SBN), focusing on credit, interest rate, and currency risks. It highlights BI's role in stabilizing the financial market, particularly during the pandemic, through active intervention in the bond market. The conversation covers the decline in foreign investment due to global factors and the potential for increased interest in SBN as global conditions improve. It also emphasizes that it is too early for BI to reduce its bond holdings, as doing so could harm domestic liquidity and economic recovery.

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Q & A

What are the main risks associated with government bonds (SBN) in Indonesia?

The main risks associated with government bonds (SBN) in Indonesia are credit risk, interest rate risk, and exchange rate risk, particularly due to global factors like U.S. interest rate policies.

How has Bank Indonesia (BI) contributed to stabilizing the financial market in Indonesia?

Bank Indonesia has contributed to stabilizing the financial market by managing liquidity, particularly through the purchase of government bonds, and by intervening in the market to stabilize bond prices and yields.

What impact could an overexposure of Bank Indonesia in the SBN market have on the economy?

An overexposure of Bank Indonesia in the SBN market could lead to inflationary pressures and potentially create a financial bubble due to excessive liquidity in the financial system.

What role does Bank Indonesia play in maintaining Indonesia’s economic stability post-pandemic?

Bank Indonesia plays a critical role in maintaining economic stability post-pandemic by ensuring that liquidity remains sufficient to support domestic consumption and investment, which are key drivers of the economy.

What was the government’s fiscal policy response during the pandemic, and how did it affect the economy?

The government implemented a cautious fiscal policy during the pandemic, managing to keep the deficit-to-GDP ratio under control and ensuring that public debt remained below 40%, which helped maintain economic stability.

How have global economic conditions, particularly U.S. interest rates, impacted the Indonesian bond market?

High U.S. interest rates, driven by strong economic conditions in the U.S., have created risks for the Indonesian bond market by increasing the potential for a stronger U.S. dollar and affecting investor sentiment toward Indonesian bonds.

What is the current state of inflation in Indonesia, and how does it relate to Bank Indonesia’s actions?

Inflation in Indonesia is currently under control, staying below the target median. This stability is partly due to Bank Indonesia’s efforts to manage liquidity and stabilize the bond market.

Should Bank Indonesia reduce its holdings of government bonds (SBN)?

It may be too early for Bank Indonesia to reduce its holdings of government bonds, as doing so could decrease liquidity in the domestic financial system and negatively impact consumption and investment recovery post-pandemic.

What is the potential impact on foreign investment in Indonesian bonds if global interest rates decrease?

A decrease in global interest rates, particularly in the U.S., could lead to increased interest from foreign investors in Indonesian bonds, as it would make local bonds more attractive relative to other global options.

What factors should Indonesia focus on to maintain the health of its bond market?

Indonesia should focus on maintaining a strong fiscal position, managing debt levels prudently, and monitoring global economic conditions to ensure that interest rates and inflation do not negatively impact investor confidence in the bond market.