Jakarta. Bank Indonesia (BI) on Monday rolled out a new foreign exchange (FX) repo instrument as part of efforts to strengthen its pro-market monetary operations and deepen domestic financial markets.

Erwin Gunawan Hutapea, head of BI’s Monetary and Securities Asset Management Department, said the instrument uses underlying Foreign Currency Bank Indonesia Securities (SVBI) and Foreign Currency Bank Indonesia Sukuk (SUVBI).

“The implementation of this instrument aims to enhance the effectiveness of monetary policy transmission and accelerate the deepening of the money market and FX market,” Erwin said in an official statement.

Under the scheme, banks obtain short-term foreign currency liquidity by temporarily exchanging securities with BI and agreeing to buy them back later, effectively allowing them to access US dollar funding quickly using their existing assets.

The FX repo transactions will be accessible to primary dealers in the money market and FX market (PUVA). Erwin noted that the new instrument provides banks with an additional tool to manage liquidity, particularly in foreign currencies.

He added that the repo feature with BI also strengthens the role of SVBI and SUVBI as high-quality liquid assets (HQLA).

“The addition of the repo feature will further increase the attractiveness of SVBI and SUVBI instruments for market participants,” he said.

BI expects the policy to boost secondary market activity for both instruments, supporting broader financial market deepening while helping maintain rupiah stability amid ongoing global uncertainties.