Bank Indonesia Makes Direct Purchases of Sovereign Debt

Bank Indonesia (BI), the central bank of Indonesia, purchased government bonds worth 4.65 trillion IDR from the primary auctions held during the week, in a move that marked a first for the bank as foreign investors exited the market early on, with the on-set of the Coronavirus.

BI’s Governor, Perry Warjiyo, and Head of Monetary Operations, Nanang Hendarsah, mentioned that bonds with a value of IDR 1.72 trillion were purchased on Tuesday (21st April) in a regular government Sukuk auction and bonds worth IDR 2.93 trillion were purchased on Wednesday (22nd April) in a “Greenshoe option”.

The purchases took place subsequent to the relaxation of rules to enable steady y...