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Indonesia Finance Minister wants foreign ownership of govt bonds to decline to 30%

[JAKARTA] Indonesia's finance minister said on Friday he wants foreign ownership of rupiah-denominated government bonds reduced to 30 per cent from the current 38 per cent to aid rupiah stability. "I will make efforts to reduce foreign ownership to 30 per cent or less through the empowerment of domestic investors and financial deepening," Finance Minister Bambang Brodjonegoro told Reuters in a text message.

Foreign ownership of Indonesian government bond hit a record high at 40.25 per cent on Jan. 30.

Historically, the rupiah has been volatile, and the currency can be sharply affected by capital outflows. This year, the rupiah has weakened about 5.3 per cent against the dollar.

Mr Brodjonegoro said he does not have a specific timeline for reaching his target and said "the process has to be natural."