October 29, 2025 | 12:05 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa will strive as much as possible to avoid using the burden-sharing scheme with Bank Indonesia (BI). The Ministry of Finance and the central bank had previously agreed on burden sharing to support President Prabowo Subianto's priority programs.
"I will try my best not to use burden sharing. Let the monetary side operate according to its principles. I will go with fiscal principles," Purbaya said during the Sarasehan 100 Indonesian Economists event at Menara Bank Mega, Jakarta, on Tuesday, October 28, 2025.
According to Purbaya, the government and the central bank have their respective roles and should not be separated. This ensures that government or political influence does not affect BI's policies, which have a long-term impact on monetary stability.
Purbaya argues that the burden-sharing scheme appears to blur the lines between the government and the central bank, effectively monetizing fiscal policy. "Actually, we never asked for burden sharing from the palace, because that directly seems to eliminate the boundaries between fiscal and monetary policy."
In the burden-sharing mechanism, the central bank and the Ministry of Finance agreed to share the interest costs of government-issued State Bonds (SBN) for financing the housing program and the Red and White Village Cooperative. BI would bear half of the interest costs of the SBN by adding interest to the government's account held at the central bank.
The amount of funds that BI would channel to the government's account through the additional interest is yet to be calculated. "Actually, there will be a separate calculation, meaning how many SBNs, the SBN funds used for programs such as housing, and also the Red and White cooperative. Certainly, these figures will be the basis for adding interest to the government's account at Bank Indonesia," said BI's Executive Director of the Communication Department, Ramdan Denny Prakoso, at the DPR Building, Jakarta, on Wednesday, October 1, 2025.
Previously, Bank Indonesia and the Ministry of Finance had signed a joint decision letter that became the basis for the burden-sharing mechanism. In a press release issued by BI on September 4, 2025, this agreement would be effective from 2025 until the end of the government's program.
Ilona Estherina contributed to the writing of this article
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