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Indonesia regulator to ease investment rules for pension, insurance funds: official

[JAKARTA] Indonesia's financial services authority aims to boost the local bond market by making it easier for pension and insurance funds to invest in riskier products, the capital market supervisor at the regulator told Reuters. "Our market is not liquid enough because there are not enough products and not enough investors," Nurhaida, who goes with one name, said in an interview late on Thursday.

"Pension or insurance funds could only invest in bonds with a certain rating, but many with lower ratings are actually quite safe. We will try to ease the investment," she said.

The regulator will also try to push for more municipal bond issuance for infrastructure development, Ms Nurhaida said. Indonesian provinces planning to issue bonds include West Java and East Kalimantan.