Bank Indonesia Given the Green Light to Buy Government Securities Worth over IDR 42,000 Billion

Bank Indonesia (BI) has been given the approval to purchase up to IDR 42,000 billion (USD 166.33 billion) worth of government bonds on the primary market in 2020, according to Indonesia’s Finance Minister Sri Mulyani Indrawati. Sri Mulyani Indrawati informed the House of Representatives Commission XI, which supervises financial affairs that BI could buy up to 25% of government bonds issued in 2020.

The Government of Indonesia had stated that it would increase bond issuances in efforts to finance the country’s 2020 budget deficit. Indonesia has widened its budget deficit to an all-time high 5.07% of Gross Domestic Product (GDP), as the Ministry of Finance continued exploring alternative sources of improving the...