Indonesia Monetary Policy During COVID-19 Outbreak: In Islamic Economic Perspective

ABSTRACT: This paper aims to find out about Indonesia’s monetary policy during the COVID-19 outbreakand how to review monetary policy an Islamic perspective. Specifically, monetary policy issued by BankIndonesia is directed to support the risk mitigation efforts of the spread of COVID-19, maintain market stabilityand financial system, and encourage economic growth. To achieve this goal, this paper explains BankIndonesia’s policies during the COVID-19 outbreak in January until April 2020 and follow up Bank Indonesia’smonetary policies, also instruments used to achieve the country’s financial stability objectives such as the BI 7-Day Reverse Repo Rate (BI7DRR), GWM, and strengthening liquidity. Then review Bank Indonesia policy inIslamic monetary perspective, such as use alternative instruments that are profit and Loss Sharing Ratio(PLS),Lending Ratio, Demand Deposit Ratio, Refinance Ratio, and also implementation of Islamic financialinstruments such us Sertifikat IMA, SBIS, andSukuk.

Keywords -Monetary Policy, Islamic Monetary, Financial Instrument, COVID-19 Outbreak.