Indonesia Raises an Additional USD 4 Billion of Funding to Fight COVID-19

The Government of Indonesia has raised USD 4.05 billion (IDR 62.6 trillion) from government debt papers (SUN). According to Deni Ridwan, Director for Government Debt Papers of the Finance Ministry, the sales came from three series of sovereign bonds through private placements with undisclosed Shariah and commercial banks. He said that these banks were looking to meet Bank Indonesia’s (BI) new requirement of higher reserves in government bonds. 

BI’s Governor, Perry Warjiyo, recently stated that BI requires banks to assist the Government in funding the fight against COVID-19, through the purchase of government bonds. He stated that the IDR 102 trillion in liquidity that was released into the economy following...