Bank Indonesia Launches New SVBI and SUVBI Strategy in Monetary Operations, See the Explanation

Bank Indonesia (BI) on Monday, 30 March 2026, began implementing a new instrument in its monetary operations. This consists of foreign currency repo transactions with underlying Sekuritas Valuta Asing Bank Indonesia (SVBI) and Sukuk Valuta Asing Bank Indonesia (SUVBI). Head of the Monetary Management and Securities Assets Department at BI, Erwin Gunawan Hutapea, explained that this policy is part of strengthening the market-oriented monetary operations strategy. “To increase the effectiveness of monetary policy transmission, as well as to accelerate the deepening of the money and foreign exchange markets (PUVA),” said Erwin in his statement on Monday, 30 March 2026. In its implementation, these foreign currency repo transactions can be participated in by primary dealers of PUVA. Erwin 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),” he stated. He hopes that through these steps and strengthening efforts, the secondary market activity of SVBI and SUVBI will also increase. “Thus, it will support the deepening of the financial markets and maintain the stability of the Rupiah exchange rate amid ongoing global dynamics,” he said.