Bank Indonesia has increased liquidity in banking by Rp94.03 trillion for the period of June 15, 2021.

Bank Indonesia also purchases Government Bonds in the primary market as part of the policy synergy between Bank Indonesia and the Government for the 2021 Government Budget funding.

"As of June 15, 2021, the purchase of SBN in the primary market was recorded at Rp116.26 trillion, consisting of Rp40.80 trillion through the main auction mechanism and Rp75.46 trillion through the Greenshoe Option (GSO) mechanism," said BI Governor Perry Warjiyo at a virtual press conference after BI Governor Board Meeting results on Thursday (17/6/).

With this monetary expansion, banking liquidity conditions were very loose, as reflected in the high ratio of Liquid Assets to Third Party Funds, at 32.71%, and growth in Third Party Funds of 10.71% (YoY).

Economic liquidity also increased, reflected in the narrow (M1) and broad (M2) money supply which grew