Bank Indonesia Designates SVBI-SUVBI as Underlying for Foreign Exchange Repo Transactions
Jakarta (ANTARA) - Bank Indonesia (BI) has implemented the use of Bank Indonesia Foreign Exchange Securities (SVBI) and Bank Indonesia Foreign Exchange Sukuk (SUVBI) as underlying or collateral in foreign exchange repo transactions, to accelerate the deepening of the financial market and support rupiah exchange rate stability.
Head of the Monetary Management and Securities Department of BI, Erwin Gunawan Hutapea, stated that this policy to strengthen Bank Indonesia’s monetary operation strategy was implemented on Monday (30/3).
“Through this strengthening, secondary market activity for SVBI and SUVBI is expected to increase further, thereby supporting the deepening of the financial market and maintaining rupiah exchange rate stability amid ongoing global dynamics,” Erwin said in his statement in Jakarta on Monday.
Furthermore, Erwin explained that this policy is part of the strengthening of a market-oriented monetary operation strategy, to enhance the effectiveness of monetary policy transmission and accelerate the deepening of the money market and foreign exchange market (PUVA).
“In its implementation, these foreign exchange repo transactions can be participated in by primary dealers of PUVA,” he said.
He added that the presence of this instrument provides an additional alternative for banks in managing liquidity, particularly foreign exchange liquidity.
In addition, the addition of the repo feature to Bank Indonesia further strengthens the characteristics of SVBI and SUVBI as high quality liquid assets (HQLA).
Previously, BI had also announced the strengthening of foreign exchange market transaction policies that will take effect from April 2026 to support rupiah exchange rate stability.
This policy includes, among others, an adjustment to the threshold value for foreign exchange purchases that must be accompanied by underlying documentation, from US$100,000 per actor per month to US$50,000 per actor per month.
The implementation of the underlying documentation submission threshold is an effort by BI to ensure that foreign exchange purchase transactions are based on economic needs.
In rupiah monetary operations, from November 2025, BI has also expanded the underlying repo instruments by accepting other high-quality securities, namely corporate bonds of PT Sarana Multi Infrastruktur (Persero).