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BI Policies could Impacted Infrastructure Development

by Sebastianus Epifany Monday, November 28, 2016 - 10:15

JAKARTA - Bank Indonesia plans to change its monetary instruments namely Bank Indonesia Certificates (SBI) became Government Securities (SBN). According to the economic observer from Gadjah Mada University, Tony Prasetyantono, these policies can help to accelerate infrastructure development which now becoming a major focus of the government.

"This is positive because SBN can be channelled into financing the government, for example, to infrastructure, to be more productive," said Toni, as reported from infobanknews.com, today (11/28/2016).

This is thought to be a solution to overcome the limitations of the state budget (APBN) in 2017, or more precisely as a financing alternative for the government. Furthermore, he also believes the policy can reduce the instrument of the Central Bank in controlling the volatility of the rupiah against the US dollar.

Toni also believes that the government project funding solution is important by explaining, “But at the moment it seems the government project funding priorities is more urgent than the operating to absorb rupiah."

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