Based on the Enactment of Government Regulation in Lieu of Law (Perppu) No. 1 2020 which was later ratified into Law No. 2 2020, the fiscal deficit is allowed to exceed 3% of GDP and Bank Indonesia is also allowed to purchase SBN directly from the primary market for fiscal financing (Figure 1).
The close coordination of fiscal-monetary  policy during the Covid-19 pandemic emergency situation was carried out through 3 (three) types of Joint Agreement mechanisms between the Finance Minister and the Governor of Bank Indonesia.