BI support for ailing banks up to Rp 132t
JAKARTA (JP): Bank Indonesia (BI) reported yesterday that its net claims on the Indonesian Bank Restructuring Agency (IBRA) jumped to Rp 132.12 trillion (US$11.49 billion) on June 5 from Rp 124.63 trillion the previous week.
The increase was mainly caused by the increase in liquidity injections to troubled banks being supervised by IBRA, BI said in a statement.
BI said liquidity credits rose to Rp 19.3 trillion from Rp 19.14 trillion. This was mainly related to the subsidized financing of low-cost housing ownership and small businesses.
However, BI's open market operations -- mainly through the selling of its SBI short-term promissory notes and intervention to prop up the rupiah -- resulted in a monetary contraction of Rp 8.29 trillion compared to the level on May 29.
The contraction was primarily caused by the buying of SBIs by both state and private commercial banks, the central bank said.
It added that the position of its open market operations on June 5 was minus Rp 72.50 trillion.
The bank also said that the increase of government deposits in the central bank from tax and oil revenues caused a contraction of Rp 1.36 trillion in BI's net claims on the government.
Although these, combined with BI's open market operations, represented a contraction in monetary aggregates, net domestic assets (NDA) expanded due to a sharp increase in BI's net claims on IBRA and a slight increase in liquidity credits.
BI pointed out that the NDA on June 5 were at negative Rp 32.38 trillion, indicating an expansion of Rp 2.06 trillion from the previous week.
Despite the increase, the NDA level was still below the maximum level allowed by the International Monetary Fund (IMF), BI said. But it did not give the level the IMF had set.
BI also said that the money reserve increased by Rp 659 billion to Rp 68.62 trillion on June 5 as a result of the NDA expansion.
The central bank's net international reserves (NIR) on June 5 were reported at US$14.62 billion, or a decline of $8.4 million from the position on May 29.
Despite the decline, the NIR figure is still above the minimum level allowed by the IMF, BI said. Again the bank did not mention the limit. (rei)
Table A: Foreign Reserves (in million U.S. dollars)
May 22 May 29 June 5
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Gross foreign assets 19,097.2 19,026.7 19,012.1
- Liquid reserves * 12,535.3 12,442.9 12,412.4
- Other reserves ** 6,561.9 6,583.8 6,599.7
Gross foreign liabilities 3,921.2 3,921.2 3,921.2
Net forward positions -34.0 -34.0 -34
Reserve against
foreign currency deposits 450.4 441.7 435.5
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Net international reserves 14,691.6 14,629.8 14,621.4
* Liquid gross foreign assets include gold, foreign securities, offshore deposits and special drawing rights.
** Other gross foreign assets include export drafts, deposits in the branches of domestic banks in offshores and deposits parked at foreign banks to guarantee letter of credits.
Table B: Monetary Indicators (in billion U.S. rupiah)
May 22 May 29 June 5
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Reserve money 70,262 67,965 68,624
- Currency in circulation 46,579 49,228 51,596
- Deposits at central bank 22,736 17,760 16,164
Net international reserves
(Rupiah at constant rate) 102,841 102,409 102,350
(in million dollars) 14,691.6 14,629.8 14,621.4
Net domestic assets -32,579 -34,444 -32,381
- Net claims on government -37,817 -36,410 -37,772
- Net claims on IBRA 102,550 124,633 132,115
- Liquidity credits 17,900 19,139 19,299
(of which to Bulog) 6,403 7,404 7,404
- Open market operations -43,261 -64,210 -72,501
Source: Bank Indonesia